Succession Planning 101: The Keys To Successfully Handing Over Your Business
By Jennifer Barnes, Founder & CEO
More U.S. business owners than ever before are considering retirement right now. Assuming your exit plan doesn’t simply involve locking the door and never looking back, there are a number of reasons why you need to start thinking about how best to hand over your business at least two years prior to your planned departure (better still, make that five years).
The stark reality is that many business owners are surprised to discover that they’re not going to end up with as much money as they’ve been expecting. Taxes are the biggest culprit. In California, plan on handing the taxman about 40% of your net proceeds. Factor in transaction costs and you’re easily at 50%. Moreover, the real value of your business versus a “back of the envelope” valuation can be a shock.
DISCLAIMER – Due to the daily changing environment and guidelines being provided by the government, this information could be outdated. Please contact our office for the latest updates and guidelines. Optima Office is not responsible for any actions taken due to the information provided. The information provided here is for instructional purposes and does not represent legal advice being given by Optima Office.