Owning your own business usually means that you’ve invested your finances, time and energy into making it a success, and it often takes a lifetime to achieve that success. But many business owners don’t have the future in mind, and the handing over their business when they retire or want to sell.
Succession planning is about finding the right strategy for handing over or selling your business to someone else – a family member, other partners – whoever it may be. Transferring a business is a detailed process and you want someone that will protect your personal and business financial interests throughout the process.
A good succession plan will help make the transfer of your business go smoothly, and allow you to maintain good relationships with employees and business partners. Succession planning helps you:
• Protect the legacy of your business
• Maintain a service for your community
• Build value for your business
• Provide financial security for your family and your stakeholders
• Deal with unexpected events (illness, accident or death)
• Prepare for the future
Succession planning can take time because there are many things to consider. Plan ahead in order to make the best business decisions, and do that planning with the guidance of an EFG advisor.