Nobody likes to think about it, but it’s inevitable that one day they will leave their business.
Whether they decide to sell up, retire, die or have to leave due to health reasons, it’s important that business owners plan for that day. A succession, or exit plan outlines who will take over the business when an owner leaves.
A good succession plan enables a smooth transition with less likelihood of disruption to operations. By planning an exit well in advance business owners can maximise the value of their business and enable it to meet future needs.
This occurs because the parties are able to put on the hats of both the purchaser or the vendor and think about the issues from their perspective in reaching mutually acceptable terms.
