Business Owners Should Consider Exploring Business Succession Plans Now.
Managing Partner Gary Wallace shared business succession planning insights with Law360 where he explains why now is an advantageous time for business owners to begin exploring a succession plan, which may include an exit strategy.
“According to the National Bureau of Economic Research, the U.S. economy is currently in its longest period of expansion with over 130 months of growth. This growth has fueled small and mid-sized business expansion over the past five years due to increased sales, easier access to credit, and low tax burdens.
However, this period of expansion cannot last forever. Over the past several months, economic data has signaled certain warning signs that could indicate a recession might be in our future either later this year or in 2021.
Business owners should seriously consider using this time, while things are still stable, to explore a succession plan, which may include an exit strategy. Many business owners are so busy running the company that they may not be adequately planning for their future succession. In many cases, with some degree of thoughtful planning, the business owner may realize that the best financial strategy is to create liquidity by selling all or portion of the business to a financial or strategic buyer.
Discover the four main reasons why owners are currently choosing to exit their businesses.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.