Updated: Mar 16, 2020
Most business owners have a goal of transferring or selling their company at the time they can receive maximum value to fund their own retirement, and many of them might recognize that a transition strategy is key for accomplishing this.
But plenty of these owners won't be able to sell their business when they're ready. This is due to not taking the necessary steps to get the full value of the enterprise at the time that it's right to leave.
Many owners of businesses today have little or no exit planning in place, even though two-thirds of existing business owners might be transitioning out of their companies in the next 10 to 15 years.
One of the most important components of this succession plan is a transition strategy. Multiple studies have shown that as many as 88% of existing business owners have no written plan to transition management and leadership of the company from the current owner to someone else.
Additional studies have also shown that a majority of owners have never even sought out advice about a transition. The truth is that transitioning your company at the ideal time might not happen in your situation.
You need to be fully prepared for the opportunities and challenges that might arise prior to the ideal time you planned to leave the company. Disability, divorce, or other circumstances could require you to leave the company early, and if you skip out on the process of planning in advance, this can put pressure on you and other team members during an already-difficult situation.
Consulting with a dedicated business succession planning lawyer is one of the most important steps you can take to ensure that your company doesn't face these unexpected challenges.
When you contact our Michigan estate planning office, you’ll receive personalized attention to help you craft the succession plan that makes the most sense for your company and your goals.