Lucido Global Business Brokers

Lucido Global Business Brokers

Adding Value, Creating Wealth

  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us

The Hidden Benefits of Planning Your Succession Strategy

By Sam Mohlenhoff Oct 19

Succession planning is something that many business owners fail to think about; however, it turns out there are benefits to succession planning that might not be immediately obvious upon first glance.  In this article, we’ll explore a recent Accountancy Daily article, “Succession Planning for Business Owners,” which details the wisdom and benefits of succession planning.

Accountancy Daily polled 500 SME owners and uncovered a variety of interesting facts.  At the top of the list is that one-third of owners felt more confident about the future of their businesses when they had a coherent succession strategy. 

In what can only be deemed a surprising finding, the poll discovered that 17% of respondents noted that succession planning actually brought them closer to their families.  In short, the Accountancy Daily poll found that succession planning came with a variety of unexpected benefits.  In other words, it is about more than preparing to hand one’s business over to a new party.

Author Glen Foster makes the point that business owners frequently underestimate the level of effort and time needed to sell a business.  The fact is that selling a business is usually a layered process that can even take years to complete.  Importantly, business owners must understand that in the time it takes to sell, the market may have changed or their own financial or personal situations may have changed as well.  Additionally, selling can be an emotional and stressful process which further complicates the entire matter. 

For most business owners, selling a business represents the single greatest financial move of their lives.  As such, it is often accompanied with significant stress and anxiety.  It is essential not to underestimate the emotional and psychological side of the sales equation.  Properly planning years in advance for the sale of a business will help business owners prepare for the emotional and psychological stress that can result from both the sales process and the eventual sale itself. 

A key part of the stress of selling a business is that business owners are often left wondering “what comes next?” after selling.  Developing a succession strategy is a way to think through such issues well in advance.

Another key aspect of succession planning is to take the steps necessary to make sure that your business is ready to be sold.  As Foster points out, you wouldn’t put a home on the market with significant problems, and the same holds true for your business.  If you want to receive the optimal price for your business, then your business should be in tip-top shape.  This means diving into your books and records and getting everything in order.  Working with an accountant or an experienced business broker can be invaluable in this process.

Copyright: Business Brokerage Press, Inc.

dolgachov/BigStock.com

 

Categories: Seller Articles, Seller FAQ, Selling a Business

Prev
Next

Featured Businesses

Subscribe to our Newsletter

No worries, your information is safe with us. We hate spam too!

From Our Blog

Ownership Transition Survey Results

January 15, 2021

Mass Mutual Life Insurance produced an ownership transition survey back about a decade ago.  The … Read More »

The Importance of Owner Flexibility

December 18, 2020

You shouldn’t expect to sell your company overnight.  For every company that sells quickly, there … Read More »

Getting the Most Out of Confidentiality Agreements

December 12, 2020

When it comes to buying or selling a business, there is no replacement for a solid confidentiality … Read More »

How to Optimize Your Chances of Selling Your Business

December 5, 2020

The simple fact is that selling your business is likely to be the single most important financial … Read More »

Insights from BizBuySell’s 3rd Quarter Insight Report

November 28, 2020

Most business buyers and sellers are wondering what 2021 and beyond will bring.  BizBuySell and … Read More »

Zeroing in on Goodwill

November 24, 2020

Goodwill is a term that might cause a little confusion for some.  But at its heart, it is a … Read More »

Global Business Brokers

Contact Us

Lucido Global Business Brokers
Keller Williams Coral Gables
550 Biltmore Way PH II A-B
Coral Gables, FL 33134
Office (305) 662-7325
Direct (954) 913-5464
rod@globalbusinessbrokers.net

Adding Value, Creating Wealth

  • Ownership Transition Survey Results
  • The Importance of Owner Flexibility
  • Getting the Most Out of Confidentiality Agreements
  • How to Optimize Your Chances of Selling Your Business
  • Insights from BizBuySell’s 3rd Quarter Insight Report

Join Our Team

Copyright © 2021 Lucido Global Business Brokers
MENU
  • Home
  • About Us
    • About Us
    • Suite of Services
    • Our Team
  • Buying a Business
    • Buying a Business
    • Buying a Business Tutorial
  • Selling a Business
    • Selling a Business
    • Selling a Business Tutorial
  • Visas & Immigration
  • Businesses For Sale
    • Featured Businesses
    • Florida Businesses
  • Blog
  • Contact Us