In the early years of owning and operating a business, one of the last things a company owner may be thinking about is an exit strategy. The truth is, though, succession planning is important. It is impossible to know when it will be needed, so having a plan ready is always wise and something that all business owners — whether in Georgia or elsewhere — should consider having.
The vast majority of small business owners would stay active in their companies for as long as possible, according to a fairly recent Wells Fargo survey. Unfortunately, at some point, it is necessary to walk away. It is believed that 70 percent of all small business owners do not have a succession plan in place, though.
Creating a succession plan takes time. It involves determining what one wants to get out of it — will it stay in the family or will it be sold to an unknown third-party? It involves getting a true valuation of the company — this is not something one can guess. Finally, it involves figuring out financing options and implementing a time line.
Sometimes, Georgia business owners have to give up their companies rather quickly due to health or other personal problems. There are those, though, who will have years to slowly exit their companies on their own terms, which is ideal. No matter how it happens, by going through succession planning now with the assistance of an experienced business law attorney, one can be prepared for when the time to exit comes so the process is as smooth as possible.
Source: entrepreneur.com, “Preparing to Exit Your Small Business“, Lisa Stevens, Accessed on Dec. 16, 2017