What Is Your Succession Plan?
Craig S. Springer, CPA, Partner, Maillie LLP
3 key factors to keep in mind.
Did you know that ten trillion dollars of wealth, including that of closely held businesses, will change hands by 2025? With this significant shift in our economy, you may be wondering, if it is time for you to hang up your hat. Maillie LLP designs individualized succession plans for our clients to help them transition their businesses with ease. When thinking about a succession plan that is right for your business, there are three key factors to keep in mind:
1. Timeframe. Are you looking to retire in five, ten, or fifteen years? Give yourself adequate time to assess the business and implement the right plan that best fits your company’s unique needs.
2. Successor. Who will be your successor? Will you look internally to an existing employee, a family member, or an external source? Do they have the knowledge, expertise, and forward thinking to continue your business in a sustainable manner? Be sure to choose wisely when selecting your next leader. Develop a plan to set them up for success.
3. Valuation. What is my business worth? Whether you will be selling your business to an internal source, or looking externally, it is important to have an accurate value on your business. If you are looking to sell, look at what needs to be done in order to look profitable and worthy of purchase.
Succession planning is not an easy subject to address, but it is a necessary business decision to sustain your future for years to come.
Craig S. Springer, CPA is a partner in the West Chester office of Maillie LLP, a certified public accounting firm. He has extensive experience in accounting, tax services and business consulting. Maillie LLP has been recognized as a Top-25 Regional Firm by the Philadelphia Business Journal and as a Top-200 National Firm by Inside Public Accounting. For more information contact firstname.lastname@example.org or 610.696.4353.