There are 5 common ways to have a succession of your business in a manner you want:
- Sell to an outside party.
- Pass the business through your will or a trust.
- Sell to co-owners of the business
- Sell to key employee or employees.
- Sell to the Company itself.
A succession plan is a benefit to the Company, it’s employees and the owners. There are advantages and disadvantages to all these alternatives. You need the help of a professional to develop the plan and the contingencies involved.
It is never to early to start the succession plan. Do not wait until it is too late. If you wait too long the value will be affected. Why waste the money on procrastination?