Use time as a friend to get prepared personally
When it comes to preparing for your future euphoric exit, there are 2 key elements:
- Preparation of your company
- Preparation of yourself
In preparing yourself for a future sale of your business (or in the event of your untimely passing prior to a company sale), here are key questions you’ll want to have answered – answering these questions is all part of building your estate plan:
- Is the legal structure and ownership structure of my company up to date?
- In the event of my untimely passing, does my spouse/family know who to contact about the legal and tax aspects of the company?
- In the event of my passing, does my spouse/family know what I want to have done with the company and all business assets?
- Does my spouse/family know their role and rights as it relates to the company in the event of my passing?
- Have I met with a tax professional to ensure upon selling my company or upon my passing that my assets will be managed in a tax efficient manner?
- Have I identified my cash flow needs after selling my company and do I have plan to meet those needs? Or in the event of my untimely passing, is there a plan for providing the cash flow needs for my family?
Use time as a friend to develop your plan with an estate planning professional. Selling your company one day is a process that will keep you busy and it will be stressful enough without also having to rush building an estate plan at the same time. Building your estate plan years prior to an exit event will allow you the time to give the plan the needed quality time to optimally think it through.
