05/25/2021 | Read Time: 2 Minutes
The most valuable asset of many self-employed individuals is their business. According to the Exit Planning Institute (https://exit-planning-institute.org/), approximately 4.5 million businesses, representing more than $10 trillion in value, will transition ownership over the next ten years. Yet, only 20 to 30 percent of businesses that are brought to market end up selling.
How soon should you start planning for an ownership transition? All business owners will eventually have to transition ownership, whether voluntarily or involuntarily. Shareholder disputes, divorce, disability, death, or other events can lead to an unexpected need to exit the business. So, preemptive planning is a beneficial practice, regardless of when you expect to exit.
Fortunately, some, even basic, planning can help to increase the likelihood of a successful transition. Working with a Huberty Advisory services professional to build and exit strategy as well as a succession plan if family transition is happening can help make sure all the gaps are covered. So many times, business owner are caught up in running their business but forget that the most important role they have is fulfilling the dream of exiting that business into retirement. “I’m working until I die” is a plan many small business owners have but most would benefit from the specialty advise they could get from a CPA exit plan. Connect with your local Huberty office to talk with a Huberty Advisor, then decide if preemptive planning could help your family. You can not start thinking about this too early.