Selling/Exiting Your Business

When you planned to start a family business, you wanted it to last and make it reach the top point you longed for. But, instead, you spent much of your lifetime building the business, which was full of adventure, especially when day-to-day tasks overshadowed your goals. And, now, when it's time to pass on your business to the successors, the old wisdom, "The critical issue concerning succession was to identify, develop, and install the successor to the business's top executive." overshadows the thought. 

And according to the data collected, only 30 percent of family businesses survive the second generation. This horrifies everyone, even more, when the time comes to hand over the ownership. A typical small business owner is often interested in ensuring that the business remains intact after retirement or death. And this gives rise to what almost half of U.S. small businesses face: the transfer-of-ownership issue. However, there are only a few options that can be considered, and some of them are the following:

1. Retain family ownership and management control.
2. Retain ownership but hire outside management.
3. Sell to an outsider or employee.
4. Close the doors.

Reasons why you Need a Financial Advisor before Transferring your Business

According to the report, we see that only 30% of family businesses get success in the next generation; some of the common reasons for the failed businesses are: 

1.  Lack of viability of the business.
2. Lack of planning.
3. Little desire on the owner's part to transfer the firm.
4. The reluctance of offspring to join the firm.

However, the major cause is the lack of planning before transferring the business. Consulting a financial advisor before making any decision will be a boon for your business. They help you by making you understand all the pros and cons of your business as well as your successor. The advisor gives you a clear assessment of what you want from selling your business and who can give you the best result. 

How will Royal West Agency Insurance Advisor Help you Reach your Goal?

The business's success to the next generation depends on combining and balancing businesslike thinking with family-like thinking. And among the many categories of planning - besides succession - too often neglected in the family business are strategic, estate, operational, and governance. Understanding these significant drawbacks during the succession of the business, our financial advisor listens to your every concern and then customizes their approaches to give you better results. The advisor helps you make the best decisions among transferring ownership to family members, employee stock option plan, sale to the third party, or liquidation. 

The advisors help you make your business unique with strategic and succession planning even after your exit. They help you make remarkable checklists before retreating from the business so that you are assured that your business is in safe hands and will grow in the future.