READY TO "GO"?

“Life's Tragedy is that we get old too soon and wise too late.” - Benjamin Franklin

Small business owners and their families rely heavily on the business for their financial security, before “retirement” and after.?That’s taken?for granted.?

But some day, you’re going to want out.?

The insurance giant, Allianz, recently published a study that looked at what owners of small and medium-sized businesses think about transferring the business ownership to someone else.

Here is part of what they found:

When asked about plans for transferring the business:

·???????18% said they plan to sell to an outside party

o??93% of these people are concerned about finding the right buyer

·???????58% said they plan a gift to family members

o??77% of these people are worried about retaining family harmony and avoiding discord.?(Just image that Thanksgiving dinner- right?)

·???????49% of married owners plan to transfer the business to their spouse when they pass away.

When asked about facilitating the formal transfer the business:

·???????27% have had discussions, but haven’t put it in writing

·???????23% have had discussions, but haven’t made a final decision

·???????3% have thought about it, but haven’t discussed it at all

·???????2% haven’t even thought about it

·???????68% have a formal written plan for transitioning out of business ownership

Over the years we’ve seen it all when it comes to how people feel about this issue.?Some are very proactive and get things planned out, while others imitate the ostrich or get “superstitious” believing that if they do anything about it – it will happen tomorrow at noon.

The fact is that an owner who is acting like a savvy CEO – looks ahead and deals with things before they become a problem.? They discuss, plan and document.

There are three problems that I want to encourage you to address – now, while you have time to do something about it.

1.????Nobody said you have to die if you formulate a plan, and please don’t let your nephew who just got into the insurance business help you navigate this critical area of your family’s financial future.?Get help from a professional who’s seen it and done it – multiple times.

2.????Worse, is to believe that your employees will enthusiastically embrace the new ownership (assuming your company is healthy enough to be sold in the first place).?Most sales require the selling owner to stick around for a while, sometimes for 2-3 years during the transition.

3.????If you are transferring to family, know that this seems to be the quickest way to kill the company.?Spouses and kids will not have your passion, drive and vision for the company in the same way that you do.?Either you plan for “ownership development” to get them ready or do them the massive favor of selling for “money” that you can share with them.

Finally, we have a network of over 200 tax, financial and legal experts that we can call on to help you make the best decisions for your personal and business situation.

Don’t get to the end of 2023 and wish you had gotten this done.

If we can help – it would be our pleasure.

Dan

President / CEO

Dan Mirgon & Associates, LLC

?PS:?If you’d be open in having a 15 minute conversation about your biggest challenge – schedule time to talk HERE.