Business owners in Nevada who are thinking about moving on to the next phase of their lives have many factors to consider before ding so. Based on information from the California Association of Business Brokers, over 12 million businesses are owned by baby boomers who may be ready to transition into retirement.
Many business owners may run into difficulties if they try to exit their family business without having a well-crafted strategy. The plan can protect the future of the business and the financial security of their family.
To help with getting the right things in order to transition out, business owners should first consider if there is a family member who want to take over the business and will be able to do so well. If the business is to be given or sold to a family member, the current owner should make sure that any transitional agreement that is drafted includes provisions that guarantee retirement income.
If the desired successor is not yet willing or able to take over the business, the business owner will have to make succession decisions that not only benefit the business, but also ensure that personal income and liquidity issues are addressed, two goals that can conflict with one another. However, a strategy can be devised to cater to both interests if the owner takes the time and plans carefully.
An attorney who practices business and commercial law may provide various business planning services to clients. The attorney may advise clients about what strategies should be used to ensure that the succession of the business does not negatively impact their financial security in retirement and provides a foundation for the business to continue to thrive.