Only 28% of family businesses have a succession plan
Small business owners are vital to our economy. They create jobs, innovate, add value to their communities, and turn their passion and dedication into financial success. Sometimes the time and effort needed to grow the business and meet the day-to-day challenges means a longer-term transition strategy is never fully developed.
A large portion – if not all – of a business owner’s assets are tied to the equity of the company. There is a lot of value that needs to be unlocked when a founder decides to retire, or at least wants a liquidity event. Luckily, there are plenty of options available depending on what an owner wants. However, there are plenty of complexities as well.
Realizing the best possible outcome in a transition requires careful planning and should begin well in advance. No matter the course, a financial advisor should be included in the conversation.
Having a plan in place prior to a succession or liquidity event increases the probability of a successful transition. Check out this video from our partners at eMoney to get you started.
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