7.2.7 Make Exit and Succession Strategies

These are two distinctive situations. In a succession, you relinquish control of the company to the succeeding executive. When you depart a business, you sell it or close it down. You should have a succession plan that also has a component on selling the business.

considering a few variables before selecting whether to sell, close, or pass along the business you’ve developed. Have you received an offer to buy your firm or your business’s assets from another company or a job offer from another organization? Do you approve of the company’s profitability? Do you expect changes in the market or industry that you can’t or don’t want to accommodate?

Are you personally ready to retire or do you think you’re working too much? Are you simply ready to try something different since you are no longer enthusiastic about the company? Your next steps should become clearer after you have answered these questions.

Let’s examine exit as well as succession.

Exit strategy: You need a sense of the value if you want to sell your business. In fact, it’s a good idea to constantly have a rough notion of the market value of the company even if you aren’t trying to sell. According to experts, you should evaluate qualitative criteria like whether leaders plan to stay on and what comparable firms have recently sold for before deciding what kinds of payment you’ll accept.

A succession plan is a method for handing over management of the company to one or more individuals or an acquirer. If the former, decide whether you’ll hand the business off to a relative or an employee, then start the training process. Take the actions outlined above to determine the business’ value because you will still need to. Engage a tax expert and an attorney as soon as possible.

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