As the owner of a small family company one day you’ll need to exit the business. You can stay on as long as you can, but eventually, you’ll have to plan your exit.
Source: Small Business Resource –
When you’ve made your decision to exit the business, your attention now focuses on executing your succession plan. You’ll be faced with many options, these will include:
. Whether to find a successor who is not only experienced, but also an entrepreneur who shares your passion for the business and who can build the business to the next level
. Whether to sell the business to the existing employees (if they can raise the capital) or agree to merge the business with a competitor, or
. Whether to sell the business to the highest bidder who meets your asking price.
Succession planning also includes tax considerations. Here you are focused on mitigating not just your personal taxes but also business tax, in the form of capital gains tax.
Succession planning is not just confined to finding an experienced leader to fill your position, selling options and tax planning.