It is always a good idea to tend to estate planning matters while you have the mental faculties necessary to do so, and you have a Florida family business to consider. Do you know how to handle business succession?
You have several options for leaving your business to someone else. Learn what they are so that you can make appropriate choices for yourself, your family and your business.
Leave your business to an heir
You may prefer to leave your business to an adult child. If so, think about which of your children is best suited for the task, and make sure that you share your desires with your candidate. It is also best to be clear about the structure you envision for future business operations.
Sell to a co-owner
Maybe your children would rather not run the business in your absence. If so, you can sell to a current co-owner, if you have one. Depending on your current business setup, you may already have this succession system in place. Ensure that your co-owner has the funding necessary to buy your business shares.
Sell to an employee
Perhaps there is not a co-owner to sell to but one of your key employees has an interest in inheriting the company. Be sure to fully vet all interested employees to make sure that they have what it takes to keep the business afloat. As with selling to a co-owner, your chosen employee needs proper funding to purchase your business.
Sell to a new buyer
Yet another option is to look outside the company entirely for someone to act as your business successor. This may require more work on your end, as you can expect to have to show that your business is profitable to entice potential buyers. One thing to bear in mind with selling to an outside party is that you may not like the buyer’s plans for operating your business.
Business succession can be a stressful aspect of estate planning. Knowing all of your options can help you gain confidence in what happens to your business and all the work you have put into it.