Once you’ve decided on an option, you’ll want to make a detailed plan. How will the transition take place? What steps will be involved?
The first thing to do is value the company. This is particularly important to know in the event of a sale, but it’s also relevant if you’re passing the business on to a family member or business partner. You’ll need to know its value in order to calculate the tax implications.
Many business owners don’t accurately value their own business. Often they take advice from friends at the gym or golf club rather than professionals. Getting a professional business valuation ensures the business is not over or undervalued and can help you the best possible price.