realize your equity
You have built a sustainable business that helps clients pursue their financial goals. As you start to approach retirement, it is time to put a plan in place to help ensure your clients continue to receive the financial advice and service they need, while also monetizing the value of the business you built. There are a number of factors that will determine the best way to structure your ultimate succession plan:
1) How much longer do you want to stay involved with the business? And in what capacity?
2) Do you already have successor identified? And if so, are they ready to take over?
3) Have you determined the payment structure with the buyer?
Here are three examples based on answers to those questions:
1) Sell, transition business, and walk away
a. Timeframe: 6-12 months
b. Successor: Highest bidder(external)
c. Purchase structure: Lump Sum or fixed payment with adjustments
d. Case Study
2) Sell, transition business, stay involved in a business consulting role
a. Timeframe: 12-24 months
b. Successor: Partner/Internal firm advisor
c. Purchase structure: Fixed payments with adjustments and consulting fee
d. Case Study
3) Transition business, stay involved, and buyer purchases business overtime
a. Timeframe: 3-5 years
b. Successor: Predetermined successor
c. Purchase structure: Equity purchase over time
d. Case Study
consultation
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What do you need to know as a seller?
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