Building A Legacy
Many business owners nearing retirement want to pass their business to their children. You have spent blood, sweat, tears and probably years to build your company with
Your child/children may want your company, but are they prepared to run it and keep the success that you have built? Have they been in an important prominent role within the company? The most successful predecessor is the person or persons that have close knowledge of the company and the intimate running of your business.
One of the most important rules of passing on your business to your children is:
“Don’t Force Them to Take Over”.
If it is not their passion or aptitude, the chances of continuing the business success
When Your Children or Others Are Your
The best success of handing down or transferring ownership of your business that you built as a legacy for your family is to choose the predecessor wisely. What if you have many family members working in the company, how do you decide who will proceed you in position at the helm? It is not recommended to pass your business
At this point, you may wish to involve your family. Be honest and
Now that you decided on the person to take over and buy the business, you can retire or move on to your next opportunity. Now What?
There Will Be Challenges
There will always be challenges and minefields along the way. Prepare for these in advance by being honest and up front. Write out a business plan or plan of attack as part of the Buy / Sale Agreement. How much will you, the previous owner, be involved? Where will the company go and how will it get there? Spell out expectations for both parties and be flexible when the business is changing, because it will change.
Having a third party, family member or even a work associate buy your business can be difficult for both parties. Knowing to expect adversity in advance is always helpful. Know that if you start out with a good open relationship that is what will be reflective going forward. If you have an estranged relationship to start, it probably isn’t going to get any better in the future.
Why Utilize A Business Broker
Having a third party is imperative in order to have the transaction be a business deal and not a family squabble. The principal value of a Business Broker is to act as a guide and buffer between the buyer and the seller. As your Broker, I can say certain things to a buyer, be it one of your family members or a stranger, and to You in order to have a productive discussion. With over 25 years of management and customer communication experience, I bring my A-game to make sure that each issue is addressed in a timely and thorough manner. I will relay what has to happen to have the deal complete and steer compromises on both sides.
There are many options to consider when you are deciding if ‘I Should Pass my Company to My Child/Children’. Most importantly, keep in mind what is important to you and to the success of your company. Let’s explore your options and map out a plan!
Contact Linda Now for a Complimentary Analysis on Your Business at (480) 648-8940, Linda.Rehak@LINKBusiness.com, or infophx@LINKBusiness.com.