Small business owners work hard for many years to build a business that has the potential to continue long after their retirement. Eventually, someone else will be running it. Savvy business owners know they need a plan to hand over control of their business when that time comes.
A clear and fully developed comprehensive succession strategy is a necessary plan for any business enterprise that wants ensure a smooth transition of equity and leadership. The benefits of succession planning include:
Effective succession planning will help prepare your organization for a future with strong leadership and direction.
Is your business built to last? Will it still be thriving when you reach retirement age and beyond? Will it be stable enough to hand off to your loved ones or to sell at a significant profit?
These are questions all business owners must ask themselves. The answers they seek are included in the valuation, along with many others they may not have considered.
Business owners use the valuation to measure their company’s health and success beyond their profit and loss statement. They want validation that the business has value in the marketplace. They often request it prior to putting the business up for sale. However, there are other opportunities for the valuation that don’t involve selling the business. These include:
According to the 2015 MassMutual Business Owner Perspectives Study, 37% of business owners have not had their businesses valued. If you find yourself among that percentage, now may be the best time to set up a consultation with us. Call us today. We look forward to answering your questions.