Owning a business is just another investment.
The reason it is so emotive for people (including myself) is it happens to be not only your job, but your life’s obsession. You think about it morning, noon and night. You love it and you hate it, all in the space of a day. A roller coaster of emotions.
The truth is, there is no greater way to get ahead in life financially than by owning your own business.
And because you are “all in” as a business owner, the stakes are always high. Not only emotionally but financially.
The biggest problem business owners have when approaching succession planning are two things:
Will the person buying my business continue my legacy? Ensuring staff, clients and suppliers are well looked after once the business owner has exited.
It isn’t always just about the money. We have seen many people in business exit scenarios where the most positively structured financial argument isn’t always the path they take. The reason is due to the emotion involved in the decision.
Scenarios where clients at age 70 could have ended up with $3 million dollars but instead opting for $2 million dollars. This is purely because the deal is one they can “live with” the most. Preferring to sell to a staff member who has shown 20 years of loyalty. Settling for the smaller figure knowing that everyone will be looked after long they are gone.
Are you structured correctly from a tax perspective?
Structuring correctly from a taxation perspective is the single biggest way of getting the most out of the years of hard work. By really deconstructing the situation and thinking about having foresight around tax planning you don’t need to be fearful of the taxman.
In conjunction with an accountant, we can look at way of restructuring before we get ready for succession.
A balanced approach
We encourage you to find a balance between not only what is the best financial outcome but the legacy you want to leave in the world. Getting rewarded financially for all your blood sweat and tears coupled with sleeping well at night will bring immense satisfaction.
Talk to Rothgard about how you can plan and structure the exit of your business ensuring your life’s work lives on without you.
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