No matter what type of company you have, business succession planning is always difficult because owners have to consider issues like the lack of control that they will have after they pass on the company to someone else.
As many baby boomers are planning to begin their second act or to retire, between 4 and 7 million businesses will have the opportunity to be sold in the next couple of years. This discussion around succession planning is important for businesses of all types but cannot be overlooked for family owned businesses.
Some of the most difficult conversations around death, inheritance, money, and personal choices will all come up during the process of business succession planning for a family owned business. It's important to begin this process by recognizing that you should never assume anything. Direct conversations with those children or grandchildren who might be interested in taking over the business should be held to get an accurate gauge on their interest.
Furthermore, you might not have anyone in your family who has the experience, skills or interest to successfully take over the family business. Getting an accurate appraisal and aligning all of your current business strategies and tools is important to prepare your company to be sold or to be transferred to a new generation.
A new owner wants to be able to step in and capitalize on existing processes and therefore, it is important to start documenting all of your processes as soon as possible. For more help with Michigan business succession planning schedule a consultation with an attorney today.