What will happen to your business once you retire?

agreement-303221_1280When you have been the driving force in your own business, it’s hard to imagine taking your hands off the wheel, let alone getting out of the thing altogether. But that’s what must happen when you retire – so how does
this journey continue without you?

It’s crucial to be prepared and get your thoughts in order long before the day you say goodbye. That way you can be sure that you’ll finish
on your own terms and leave a legacy that will fuel those taking it forward.

Here are some things to consider:

  • You must be totally realistic about the prospect of a sale. What is there to sell without you? It is easy to have an overinflated view of the value of “your baby”.
  • It is rare to get a good price for small businesses with less than £2 million turnover and you may not like what happens afterwards.
  • Do your family actually want the business to be passed on to the next generation? Do they want to purchase it?
  • Will they put in the required effort or will it be a burden? Often people are blind to the real wishes of the next generation who say what appears to be expected of them.
  • How will it be divided up and what will you do with those who do not get a share? 20 uninvolved family shareholders at the next generation is a nightmare.
  • Could you sell to the staff or even give it to the staff? Would individuals come forward who see value? Can you use some of the schemes that allow a “trust”, or ESOP (Employee Stock Ownership Plan), to be set up for joint ownership?

Above all give yourself time to achieve an outcome that you will be content with when you look back.

Contact us for more information/advice around retirement on enquiry@w-l-p.co.uk.