How to Build a Business Succession Plan
Whether it's a few years from now or decades away, there will come a day when you will leave your business. To ensure your business passes successfully to its next owner, it's important to begin planning now. The best plan may be one that occurs over multiple years.
Not only will having a succession plan in place help to transfer ownership of your business to the correct people at some point in the future, it also offers valuable benefits today. When you have a succession plan in place, banks, clients and suppliers have greater confidence in the stability of your business.
Our advisors can work with you and your team of advisors to:
Clarify your goals.
Build your succession plan.
Manage your risk.
Value your business.
Adjust your plan, as needed.
Some strategies for business succession can take years to fund and implement. The sooner you start thinking about how you want to transition your business, the sooner you can start putting in place the plan that will help get you there.
A buy-sell agreement is a written document that facilitates the smooth transition of ownership between you and the person who will succeed you as the owner of your business. It provides mutually agreeable terms, assures creditors and employees of business continuity and reduces potential for discord and litigation. It isn't enough, however, for the agreement to simply specify how ownership of your business will pass to your partner or to a key employee. To realize the benefits of your agreement, it must be adequately funded. Northwestern Mutual advisors will work with you to identify the best options for funding your agreement.
By taking steps today, you can ensure the smooth transition of your business with the least possible conflict, expense and delay. And you'll have the confidence in knowing your estate and retirement income plans can continue to provide for yourself, your family and heirs.
Our financial advisors can help you plan and manage your business with products and services that work with your financial plan.
It's easy to get started—no commitment, just a conversation