Planning for the transition of your business does not necessarily mean putting yourself out of a job. Perhaps you enjoy what you do and you can’t foresee a day when you are no longer involved to some degree in the business. Realizing this from the outset can save you a great deal of heartache in the future – especially if you build this into your plan.
Oftentimes, as a former owner, you can play a very important role even after the business has transitioned to a new owner, and this can be of benefit to you, as well. While you were the owner and operator, your attention was divided several different ways, but having sold, you may have more time to focus on ideas that piqued your interest throughout your career. There may be a multitude of special projects, untapped markets or potential product lines that are of interest to you, which time hadn’t allowed you to explore previously. If the transition of your business is planned in an organized manner, such projects may provide you with the perfect consultative role to play in the ‘new’ company. After all, your knowledge, insights and understanding of the existing business can be viewed as extremely valuable to any purchaser.
Conversely, staying on as a ‘consultant’ to the business might not hold any allure for you. The beaches down south or the cottage up north may be calling your name – and you want to answer that call. You may have an ideal retirement date in mind at which point you would like to call it quits for good. What is key here is identifying this in advance, in order to ensure the smooth transition process that you desire when you are ready to do so.
Stay tuned for new posts in our succession planning series every Thursday. Missed a post? Read on here:
Post 1: Planning for success[ion]
Post 2: There's selling and then there's everything else...
Post 3: Keeping it all in the family ...or branching out from the family tree
Post 4: When 'What If' Becomes 'What Now?'
Post 5: Should I stay or should I go?
Post 6: Beware of the tax man
Post 7: Freezing value = saving long-term
Post 8: What it's worth now, and how
Post 9: There's value and then there's worth
Post 10: Visualize, then plan
Post 11: The key is transparency
Post 12: Keeping up with the paperwork
Post 13: Consider all options
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About Richter : Founded in Montreal in 1926, Richter is a licensed public accounting firm that provides assurance, tax and wealth management services, as well as financial advisory services in the areas of organizational restructuring and insolvency, business valuation, corporate finance, litigation support, and forensic accounting. Our commitment to excellence, our in-depth understanding of financial issues and our practical problem-solving methods have positioned us as one of the most important independent accounting, organizational advisory and consulting firms in the country. Richter has offices in both Toronto and Montreal. Follow us on LinkedIn, Facebook, and Twitter.