If you were born between 1946 and 1964 and you own a business, you are a “Business Baby Boomer.” Are you ready for the next stage of your life – the one labeled “R-E-T-I-R-E-M-E-N-T”?
Over the next five or so years, businesses owned by Baby Boomers are either going to be sold outright or ownership realigned for the next generation. To carry out either task requires a strategic growth or exit strategy to maximize the company’s value in the marketplace.
According to the International Business Brokers Association, by December of 2012, retirement became the top reason owners sold their companies. Retirement continues to be a strong motivation for sales in 2013. And there is no logical reason why that trend should slow down, given that every day for the next 17 years, 10,000 Baby Boomers will turn 65. When you are talking about such a large group (79 million people or 25 percent of the overall U.S. population), the impact of retirement on business transitions cannot be ignored.
Entering this transition phase takes careful planning,
strategic foresight and methodical execution.
A well designed exit plan is crucial to funding a successful retirement, especially if most of your wealth is tied up in your business interests. Fortunately, Shields Legal Group has developed a process called “Growth to Exit.” We identify and offer solutions to correct problems areas within your company. We also recommend the necessary procedures and processes that will satisfy the strict due diligence scrutiny of a potential buyer.
Another aspect of preparing a business for transition is to make sure that the corporate governance documents are current and reflect proper ownership. Any conflicts between family members or owners, for example, must be resolved before a potential buyer is approached. Protecting the company while maintaining clear ownership roles avoids potential future litigation.
If your company faces the threat of litigation or is now embroiled in legal conflicts, we have several valuable resources. The Hon. Anne Ashby (Ret.) is now acting Of Counsel for SLG and her “bench wisdom” is invaluable to litigants. Corporate Litigation Advisors provides expert strategic planning and management of complex litigation, which frees up your senior level management to focus on their business goals.
These are just some of the areas of concern that a Business Baby Boomer should consider before selling the company. The business lawyers and consultants at Shields Legal Group have helped many companies transition through either growth or exit. To learn more, please contact James D. Shields at 972-788-2040 or visit ShieldsLegalGroup.com.