When it's Time to Transition, Will You Be Ready?
If you're like most business owners, chances are that you are more involved with the day-to-day operation and growth of your business and, that succession planning is not the highest priority issue. This makes good sense, especially if the majority of your wealth is held in your business.
Unfortunately, though, you cannot run the business forever. Whether you receive and offer you can't refuse, need to slow down for medical reasons or are ready to enjoy the fruits of your labour by easing into retirement, you will at some point need to think about transitioning the business.
It's never too early to start planning
Transitioning a business is not an event; it is a process. It almost always involves the owner's desire to realize the value of their company and how it affects your tax, wealth planning and family situation. This, in turn, requires you to look beyond the advisors you used to build and grow the business and identify different experts to help protect and grow your wealth. By planning in advance, you gain the flexibility to:
- Choose the most appropriate exit strategy, whether to keep the business in the family or sell to a third party.
- Maximize the value you get from your business while minimizing the tax implications so you can retain as much of the sale proceeds as possible.
- Determine how to invest the proceeds after the sale so you can get the financial future you want.
- Plan for the effect of the sale for both the owner and family members.
- Obtain a coordinated strategy for your transition that takes your corporate finance, tax planning, estate planning, investment planning and insurance planning into account.
Replacing your cash flow
Determining how to replace the cash flow from your business following a transition can be a daunting experience. The Latremoille Group has the knowledge and expertise to put a wealth plan in place so you can realize the future you want.