Most exit options for company owners lead to the same path
It’s not uncommon to hear a private business owner say that selling one day to a third party isn’t an option of interest so preparing for such an event isn’t on their radar screen. For these owners, their thoughts are to transition their company to a family member or perhaps transition it to a member of the management team. These are certainly both very viable options.
Here is what you should keep in mind….either of these scenarios still have one thing in common. And that is at time of your transitioning to a family member or to your management team, a valuation will need to be placed on the business. Just as if you were selling to a third party, transitioning ownership to family or not, most likely you’ll need a valuation placed on the business for various reasons including handling of your personal taxes.
So start thinking today about how to maximize the future value, or worth, of your business because most exit scenarios that you may want to consider will require placing a formal valuation on the business. Optimizing this can take years of solid planning and execution so begin your journey today to plan for your future euphoric exit event.
