Money Smart: Selling your Business Recap
In our last Money Smart class of the year, Katy Woods and guest Debbie Webber, a Coastal VP and Commercial Lender, led the class and provided an overview of selling your small business and succession planning. In this information-packed class, attendees learned:
- How to change the ownership of a business through selling, closing, or transferring the business to successors.
- How to establish an exit strategy for retirement, including a succession plan, transferring business ownership, and paying taxes.
While many businesses run for years, even over several generations, businesses open and close all the time. Some reasons include changes in the market or industry, a purchase offer for your business, retirement, or a desire to go in a new direction. Before starting, you need to determine if you have a saleable business. The value of your business can be determined by many business valuation methods. Business owners often get help from accountants, attorneys, and industry specialists when determining the value of their businesses, negotiating, and structuring a business sale.
Part of your exit plan should be succession planning. Succession planning involves creating a plan for someone to either own or run your business after you retire, become disabled, or die. In simple terms, succession planning is the process of passing control of the business to others.
For a step-by-step guide to start succession planning, download our free guide, Business Succession Planning.
Transitions that include selling a business, closing a business, and retiring are all part of the life cycle of a business, and you should prepare for them. You may not need to immediately focus on these transitions if you’re just starting your business. However, when you feel you and your business are in a steady state, give some thought to these transitions and create your plan.
The insights gained from our Money Smart for Small Business classes will empower you with the skills and knowledge to manage your cash flow effectively. If you want to talk to us about past classes, you can reach out to your Banker! Or, if you would like to sign up for the 2024 webinars, you can register here: https://www.coastalbank.com/money-smart.