Succession planning for your businesses
Our Lombard Accountants team know that it takes guts to start a business, especially in these Covid times. It also takes a strategic mindset to succeed and to know that it is time to plan for succession in your company. You may not be ready to hand over the reins of your business or sell just yet, but it’s prudent to have a plan in place for the future.
Business owners are no strangers to weighing risk and navigating uncertainty, but the climate in Ireland over the last year or so has ramped everything up. Many business owners now face the uncomfortable position of having to remap carefully thought-out succession plans and exit strategies and to consider selling their business.
So what should you consider when preparing the sale, the Lombard Accountants team have three key things you should consider.
- Get your house in order – Ensure you have systems and processes in place so the business isn’t reliant on you, but can run as a standalone entity.
- Maximise your profit – Make sure that you are not making decisions to minimise your tax liability – because what you’re trying to do is create a profitable business.
- Don’t put off your succession plan – even if you are not ready to sell It’s a good idea to think about this long before you need to sell so that you maximise the value of the business and achieve a better outcome. It’s also worth remembering that retirement doesn’t mean you have to be doing nothing. If your business can run as an asset without your involvement, you don’t have to sell it completely, so not selling down 100% of the business is a viable option.
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