I was at a conference recently where an economist was speaking and referred to this as a "re-set" economy." He said that we and our clients all would be forced to reset our expectations and objectives as the financial markets find their way out of the abyss. I found it to be an interesting take on what we need to do with our clients.
Our clients tend to be later in their career cycles and are looking toward the day that they will be exiting their business. We have to help them start doing the things today that will help them be better prepared and better positioned that when the day comes, they are more attractive to an acquirer.
What are some things a business owner over the age of 50 should be doing today to have a better handle on his or his exit planning needs?
- Assess post-retirement income needs and sources of income other than the business
- Consider whether the business will likely be sold to outside third parties or passed to family or other insiders
- Minimize taxes
- Minimize liabilities through proper entity formation and insurance
- Downsize if necessary
As we come out of this recession and older business owners want to retire, the ones who do so successfully will be the ones who used this time to make their businesses lean, identify opportunities during this downturn and take advantage when things start turning upward.
Recent Comments