Entering into business succession planning is imperative for anyone that owns a company. This strategy is necessary for passing ownership of the business or protecting it against the loss of a key employee.
Developing a business succession plan lets owners choose a successor to take over the company in the event of retirement, death, or if tragedy strikes and prevents the owner from performing their duties.
In addition to choosing a successor, owners need to establish a value for the business. If multiple partners are involved, values can also be established for each partner. Business values can be obtained by conducting an appraisal of business assets, purchase orders, accounts receivable, and shares of stock.