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Success in Succession: Now Is the Time to Develop an Exit Strategy from Your Business

Let’s talk briefly about succession or exit planning from your business.  You may think that time is a long way off, but it will be here before you know it.  My hope is that the three paragraphs below will provoke you to think about the topic and then those thoughts will lead to action.  It really is never too early to start thinking about how you will exit your business.   

Succession Planning is a topic you either embrace spending time and resources on it; or you think, “I will get to that eventually.”

I am currently assisting two clients who are actively working toward transitioning out of their businesses. The first has been planning his transition for many years.  When he was young, and selling his company was a very distant thought, he made some decisions. He consulted CPAs and attorneys, spent some money and laid the groundwork for the eventual sale of the business.

It was a lot like a farmer planting a seed in the ground. He can’t see it after the seed is planted. But he trusts with proper care and time the seed will become a full-grown plant to be harvested and sold.

Because of the decisions this client made decades ago, there are many options for him to use to exit his company successfully while maximizing the value paid to him.

The other client thought about succession planning, but did not take any action. Now, in the twilight of his career, we are scrambling some to create an exit strategy that will afford him the type of retirement he desires. Our options are limited as compared to the first client, and the result probably will not be quite the same. 

My final thought is to encourage you to think about how you will exit your company.

Then, after you think about it start taking some action. Hire professionals and develop a plan. Your plan will probably change over time as your needs and dreams change.  Your ability to work will come to an end, that is a certainty.  How you transition into that phase of life is not certain.  To have a positive, successful result you need to start now.

“Twelve years ago, Bowers did a great job assessing my financial needs. They provided me with an analysis of my current financial status and provided a forecast of my future needs. From this analysis they assisted my attorney in putting together a financial plan for my estate. Because of this plan, I believe it had enriched my estate. After reviewing this plan 12 years later, I am very satisfied with the decisions I made. The work Bowers provided was excellent.”
5-Star Testimonial
Greg Cundiff
Chairman of the Board CGX, Inc.

About Bowers & Company CPAs

Bowers & Company CPAs aims to offer helpful information to our clients and friends. Learn more about how we can help should your business need accounting and financial services.

Disclaimer: To ensure compliance with requirements imposed by the Department of Treasury, we inform you any U.S. federal tax advice contained in this document or video is not intended for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.

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Bob Teska

Bob Teska

Bob Teska, CPA, CCFIP, is Partner-in-Charge of Construction Services at Bowers & Company CPAs PLLC. Reach him at 315-234-8157 or RMT@bcpllc.com. Bowers & Company aims to offer helpful information to our clients and friends. Learn more about how we can help should your construction business need accounting services.

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Bowers & Company CPAs - Accounting Services Firm in Syracuse and Watertown NY
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