Most people avoid planning their exit from their company because they are under the impression that they will never leave the business, and therefore estate planning is not necessary for the company.
Many business owners take natural pride in what they’ve created over the course of the years. Some of them are so excited to continue the legacy and have structured their business in such a way that they don’t need to retire. These business owners intend to continue leading the business they have worked so hard to build until they pass away.
Plenty of these owners assume that it’s fine to wait to prepare for their business exit and then decide not to plan for their exit at all. The truth is that many of the circumstances that could push you outside of your company could be outside of your control. For example, what if poor health causes you to have to exit the business suddenly.
There are three major benefits for exit planning even if you don’t intend to ever leave. The first of these is to reduce taxes. The second is to protect your values, including a work culture that is strong and unique. The final reason to engage in exit planning even if you don’t intend to leave is to grow the business. Exit planning activities can assist you with increasing the potential for your business growth.
The more value drivers in your business, the more options will be presented to you when you inevitably leave the company. This can even make your role as owner even more fulfilling. Schedule a consultation with an experienced business succession planning lawyer today to learn more.