Planning Your Business' Future: Changes in Ownership
Whether you've spent years building up your company and are ready for retirement or are buying a business or take over for the prior generation, changes in ownership can be a stressful time for any business. How do you make plans for the change in ownership that will best benefit your interests? Here's a quick look at some options to consider.
If you're selling a business, do you know what it's really worth? Though it's easy to simply guess at the value based on similar business sales in the area or other methodology, a professional business valuation not only gives you a fair market value, but it also helps you discover what your company's strengths or weaknesses are before you start the sale process, allowing you to make improvements prior to changes in ownership.
Are you making a change of ownership to or from the prior generation? Passing a company from one generation to the next can be stressful for all involved. The incoming owners need to know that they're getting a solid company that will retain its customer base. The customers want to know that the new owners will continue to serve their needs. The retiring owners want to know that they're getting a fair price for their intangible investments into the company while still keeping the company solvent with a promising future.
When you're buying a business, you'll have many of the same concerns as an incoming owner in a family business, though the outgoing owner may not be as concerned about the company's future. Making a solid plan for the business' foreseeable future can ensure that the transition goes smoothly and solidifies your business's future success.
When a planned change of ownership takes place, the transition is much smoother for all parties involved. It's also a better way to ensure all parties are satisfied that the final negotiation is fair on all sides. But what if you're not sure how to plan for the transition? At AccountRely, our business is helping your business succeed in all phases of operation. Please feel free to contact us today to be paired with one of our business services professionals to help plan a successful change in ownership for your company.