If you are starting to think about retirement, then it is time to think about business succession. You can try to tackle this on your own, but an experienced business succession attorney is beneficial. Danna & Associates has the background and skills to help you plan for the future. This ensures you and your business are in the best position for a profitable and smooth transition when that time comes.
Below are some of the components of a business succession plan:
Exit strategy. Determining what will happen if and when you are no longer able to run your business is critical. This tool can help us evaluate all of the “if this, then that” scenarios. These scenarios may include how you will leave the business at retirement. Some options are winding up the business, selling to an interested party, or passing it down to a family member.
Disability insurance. Disability insurance is an essential funding consideration. It helps keep the business and your family afloat should unexpected or unforeseen events alter your succession plans. In such instances, make sure you have the right kind and amount of disability income insurance to support you and your family. Also, key man disability insurance can help keep the business running without you.
Retirement and estate planning. If you have not done so, then now is the time to start a retirement plan. A comprehensive retirement plan typically includes tax-deferred investments (e.g., think 401K, SIMPLE Plans, etc.), after-tax savings vehicles, trusts, and all manner of assets designed to provide the greatest return on your hard work for a future retirement.
Are you mentoring your successor? Think about what makes a good “you” in your business. What does it take to run your business efficiently and effectively? Once you have identified those personal qualities and traits, then it is time to select a successor. This is the person you want to take over. Choose wisely.
Timeline. We will craft a flexible, written timeline. It includes when you would like to retire and sell, close, or transition your company to a new owner.