Transferring a business is a long, complicated process that can have a major impact on your finances and retirement. Our guide offers useful information on the transfer process, including key points to consider and what type of expert can help you at each step.
Many business owners don’t have a succession plan in place. Some are reluctant to take time away from running their business, while others find the prospect daunting on both a logistical and psychological level. But don’t put it off—experts agree that advance planning for a business transfer is a key aspect of sound management.
Start by identifying the goals of the transfer with the help of your Business Transfer Manager and Commercial Banking Manager. This will allow you to lay a foundation for the transfer and make the entire process easier.
Who do you want to transfer your business to? This is one of the most difficult aspects of the business transfer process. At this stage, there are a number of possibilities available. You might want to sell your business to family members, key employees or an external buyer.
Once you've chosen a successor, you need to set a selling price for your business and consider the tax impacts of the transfer. This means conducting an objective valuation of your business.
Now it's time to draw up your succession plan, also called a transition plan. It should be drafted carefully and shared with everyone involved in the transfer, whether or not they work for your company.
At this final stage, you and the buyer will decide how best to finance the transfer in light of fiscal, financial and legal considerations.
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