One of the most attractive aspects of being an American is the opportunity to start a great company and then sell it for enough money that neither you nor the ones you love and care about will ever have to worry about financial issues again. Most people agree that it is a better idea and a more rewarding process to create a successful business than it is to sit back and enjoy the fruits of your labor. Regardless of how you view things, there may come a time when you wish to sell your business. If this is the case, adequate planning and estate plan implementation can make sure that you sell at exactly the right time and in a manner that makes the most out of the sale. The following are some important issues to consider if you are debating whether to sell your company as part of your estate plan.
Consider Whether You are Maximizing Your Estate Planning Options
If you are debating selling your business, one of the best places to begin is by reviewing your existing estate plan in regards to whether or not you are maximizing your estate planning options. Several estate planning tools including grantor retained annuity trusts, charitable remainder trusts, and other trusts can be utilized to decrease the tax burden associated with such a large transaction.
How Will the Decision Impact Your Family?
If your business is either family-held or closely-held, you should give great thought to how such a transaction could impact family dynamics. If you want to make sure that your existing loved ones who help to support the business continue to do so, you should consider whether this could influence who the ultimate buyer is. Many private equity firms have a short investment horizon and many come with new management teams. If the sale of a business marks the end of a family’s involvement, you should consider whether you are prepared for such a decision.
What Does the Business Need?
You almost certainly have a concrete idea of what type of environment your business needs in order to flourish. You should, however, think carefully about what the business will need going forward. This reflection should include considering whether your buyer shares your vision and has adequate resources in regards to talent and capital to allow the business to keep growing.
What is Next for You?
Many people experience a substantial cognitive decline when they retire. As a result, many successful business owners who step away from the daily role of running a company end up experience cognitive changes soon afterward. As a result, you should consider whether you are truly ready to make such a decision. After all, some business owners find that they do not have the resources to retire self-sufficiently and do not want to end up under someone else’s employ.
Contact a Knowledgeable Estate Planning Attorney
Planning for what happens after you die or become incapacitated is a challenging issue, but an experienced attorney can help. If you or your loved ones need the assistance of an experienced attorney, you should not hesitate to contact attorney Jim A. Lyon today to make sure that each of your estate planning goals is achieved.