For many self-employed individuals, their business represents their most valuable asset. According to the Exit Planning Institute, around 4.5 million businesses, valued at over $10 trillion, are expected to change ownership in the next decade. However, only 20-30% of businesses listed for sale actually get sold.
When Should You Start Planning for an Ownership Transition?
Every business owner will eventually face the need to transition ownership, whether voluntarily or involuntarily. Events such as shareholder disputes, divorce, disability, death, or other unforeseen circumstances can necessitate an unexpected exit. Therefore, proactive planning is crucial, no matter when you plan to exit.
The Benefits of Early Exit Planning
Implementing even basic planning strategies can significantly increase the chances of a successful ownership transition. Collaborating with a professional from Vesta Advisory services to develop an exit strategy and, if applicable, a succession plan for family transitions, can ensure all potential gaps are covered.
Many business owners become so engrossed in day-to-day operations that they overlook the importance of planning their exit. Remember, the ultimate goal is not just running your business, but also successfully transitioning out of it and into retirement. While some business owners may joke about “working until they die,” the reality is that most would benefit immensely from specialized advice on exit planning from a CPA.
Take the First Step Today
Connect with your local Vesta office to discuss your options with a Vesta Advisor. Preemptive planning can greatly benefit your family and ensure a smooth transition when the time comes. Remember, it’s never too early to start thinking about your business exit strategy.
