What is my business worth?
If you’re thinking about leaving your business behind, careful financial planning up front can make it a smooth transition that ensures you and your company thrive after the transition. KWC can help formulate a successful plan.
Here are five tips on how to make a graceful exit:
- Work on a succession plan. Spell out your wishes. If you’re considering passing on or selling the business to a family member or employee, notify them of your intentions. Ensure that your plan answers questions about who will be in charge, how much of a stake they will acquire and at what cost. It should also offer a time line for the transfer of power.
- Groom a successor. Start teaching your heir apparent about the business’s operations and finances now, and assume it may take a year or two to pass on all the knowledge. Notice their weak points and either train or hire professionals to help.
- Create a great communicator. Your successor needs top-of-the-line communication skills to influence clients, vendors, employees and others.
- Show your faith. If you don’t instill confidence in the proposed successor and demonstrate to workers that you trust this person to take over and keep the business growing, you’re sowing the seeds of future problems.
- Let them be who they are. The new leader needs his or her own vision and approach. Leaders with their own strong brand will be better able to succeed as they take over the top role.
Trust KWC to make the terms fair and beneficial.
CPA – Managing Principal
• 40+ years of experience in Accounting, Tax, Audit and Business Consulting
• Graduate of Virginia Commonwealth University