The inevitable exit from ones’ business is rarely given enough attention…. until it’s too late.
This is because business owners generally never start or run their business with an end game. Their goals are generally: making a profit; growing and sustaining the business while avoiding failure.
But what happens if they unexpectedly become incapacitated? Or if they unexpectedly pass away? Or their children decide they want nothing to do with the business?
Globally and locally, most small business owners are 50 years of age and older. Understandably, they are preoccupied with the daily challenges of operation, to the extent that their exit from the business and transfer of wealth to family have not been given the required attention. Their unpreparedness could result in the loss of some of this wealth and lost tax opportunities.
This dilemma can be overcome with a proper exit strategy. An exit strategy that starts with 3 key decisions for business owners:
- The lifestyle they aspire to in retirement or in their next venture.
- Whether they desire their business legacy to continue when they move on.
- Whether they want their children to succeed them.
These are life-changing decisions and are best arrived at with input from spouse (or partner) and family.