Both Are Exit Strategies
In a sale the typical goal is to maximize the value. In a family succession, the goal is often to transfer wealth and create a secure future for the next generation of family. There are different considerations from a valuation perspective to tax strategies and the presentation of financial statements. We can help discuss your options.
Exiting is New for Most Owners
How often does an owner exit a business? Most only exit a business once in their life. It is a new experience with a series of decisions that can alter the outcome. Whether your need is to begin to sell to an outside party or conduct a family succession, we can help.
Lucke & Associates Will Provide a Blueprint
Let our professionals help you develop a process to control the outcome. Planning for a sale or succession may take years. In a succession, you may need more time to conduct gifting and to train the internal family team. These steps below are high level descriptions that include more detailed activities. Lucke & Associates will:
- Conduct a Planning Meeting; to identify goals and gain information about the company.
- Establish a Timeline; to determine what needs to be done, by who and when.
- Set Formal Meetings; that could be monthly to quarterly, depending on the timeline.
- Introduce Outside Advisors; bring in legal, valuation, or brokerage, as needed.
- Refine the Financial Position; work to make the financial reports as strong as possible.
- Prepare for a Post-Exit Life; address wealth management or ongoing tax support.
Time is a Valuable Tool in Exit Planning
In general, the shorter the planning timeframe is, the less profitable the sale may become. Time enables you to refine operations to maximize value; ensures key-man and non-competes are in place; allows owners to remove themselves as much as possible from the day-to-day operations, and provides time to let a tax strategy unfold, especially if gifting is involved.