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Succession Planning Management: How to Exit Gracefully

Are you considering stepping away from your business due to another opportunity? Do you want to retire? Maybe you foresee that soon, you won’t be able to continue in your current role due to health or age-related challenges.

 

You’ve heard the term Succession Plan but what is it and what should you think about when creating one?

 

A Succession Plan is simply a playbook for how the ownership of a business will change. The change may happen through closing, selling, or transferring the business.

 

The most important step – and the one that drives all other decisions – is to determine how and to whom the business will be transferred.

 

closed sign If closing, consider:

  • What is the timing?
  • What costs will be involved?
  • Will you sell assets before closing? How? To whom?
  • Do you have outstanding issues with vendors, customers, creditors to clean up?

 

 

This video on succession planning may help.

 

Selling or transferring to:

 

No matter how you will transfer your business:

  • Create a timetable for your exit with milestones
  • Create contingency plans in case of a change of mind or status
  • Plan for your personal future after the transition

 

Finally, consult business professionals (attorney, accountant, business broker, and/or strategic advisor) throughout the process to guarantee you exit gracefully.

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