Succession Planning: How To Exit Gracefully

Well after you’ve gone through all the necessary steps to get a loan for business and had your enterprise up and running, you’ll need to take a look at succession planning to make sure all ends are tied up. Most people plan on how to expand their business and not possible strategies to leave it behind, but that day will inevitably come.

Of course there are several different options open to you. You need to take a look at several to decide which is the one that best suits your needs. Following are a few succession planning exit strategies that you can use when you’re ready to shut the door and head for the golf course.

Finding a successor that’s already in the hierarchy or a family member is the preferred choice. You might even choose someone who’s been with you through all the stages of your development including getting small business funding. One of the big advantages here is not needing to include a third-party.

You can also transfer the ownership of your business to an employee buyout. Finding a group of employees who can pool their money to buy at least part of your company has advantages that include the fact that there is usually limited due diligence necessary to complete the deal.

However, just like when you are looking for a loan for business, you need to consider the negative side of this succession model. If the purchase attempt fails this can negatively affect the morale of your employees and their performance going forward.

Selling the business to a third party is another option. An IPO is one way to go about this. You can also sell to another business but whatever you decide it’s essential to have team of professionals on your side you can communicate with. They need to help you navigate through the process.