A succession plan can be part of your sales pitch when selling your business

Whether you are ready to retire or simply want to move on to something new, you may want to sell your business. As the owner, you might hope to sell it to a family member or business partner. You could also have an outside investor who wants to take over your already successful company.

One of the things you can do to make purchasing your business more attractive as an investment is the same thing you would do if you wanted to keep the business until you grew old. Creating a succession plan and integrating a transition into that plan could make buying your company a much better deal for a potential new owner.

Some companies don’t survive the transition to new ownership

When someone takes over a company, they have to learn how the business runs. They need to meet the staff and familiarize themselves with the flow of daily operations. All of that can take months without support. Companies can and do fail when someone buys them but doesn’t know how to keep the company running smoothly.

Your thorough succession plan helps the new owner step into your former role

Your plan will likely include the details of your daily job and all of the crucial information they need to fill your position. Your plan should also include an overlap between your tenure at the company and when the new owner assumes full responsibility.

You can help introduce them to staff members and help develop their bonds. You can familiarize them with the systems that the business uses. When a potential buyer sees that there are step-by-step instructions for them to train themselves and the support of the former owner to help ensure their success, the investment involved in buying your business becomes less of a gamble than it might be otherwise.

A good succession plan can make buying your business a much more tempting prospect. Anyone hoping to sell or transfer ownership of their business will want to explore the possible methods for doing so and how to best protect themselves. An experienced attorney can help.

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