Newsletters

Orchestrating an Exit

By August 28, 2013February 28th, 2014No Comments

About 60% of small-business owners were born before 1964, which means that one baby boomer business owner will turn 65 every 57 seconds for the next 17 years. That’s a pretty big wave of prospective retirees, many of whom have not put much thought into how they might step away from their businesses.¹

Some business owners may avoid the succession issue because they love working and don’t want to stop any time soon. But one never knows what the future has in store; even the happiest business owners may need an exit strategy.

13085x_chart

Devising a written succession plan for your business could ultimately benefit you, your family, and possibly your employees. Here are several important questions you can use to start the process.

Who will step in?

Keeping your business in the family may be an easy decision if you have an adult child or another relative with the desire and aptitude to take over. Otherwise, it may be necessary to sell your business to co-owners, outsiders, or even your own employees at some point in the future. In some cases, closing and liquidating the assets may be the only viable option.

When will you go?

Consider that any effort to identify and groom a successor might take longer than you expect. And if you plan to sell your company, it could take five to 10 years to find a qualified buyer, begin the ownership transition, and finalize the transaction. Therefore, it might be wise to have a realistic retirement date in mind as you consider possible courses of action.

What lies ahead?

Many business owners plan to rely on the proceeds of a sale to help fund retirement. To get the best possible price and terms, you may need to focus on improving the company’s balance sheet before you start seeking a buyer. When passing your company to the next generation, you may want to prepare by removing certain personal assets from the books. Finding ways to reduce the value of the business could help you gift ownership shares with fewer tax consequences.

Finally, making annual retirement plan contributions to build an investment portfolio outside of your business may help provide greater flexibility during and after a period of transition.

1) Forbes.com, December 7, 2012

The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2014 Emerald Connect, LLC
© Mahoney Asset Management

INVESTING RISK DISCLOSURE
Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. Before investing, consider the funds’ investment objectives, risks, charges, and expenses. Contact Mahoney Asset Management for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

IMPORTANT CONSUMER INFORMATION
This web site has been prepared solely for informational purposes. It is not an offer to buy or sell any security; nor is it a solicitation of an offer to buy or sell any security.This site and the opinions and information therein are based on sources which we believe to be dependable, but we can not guarantee the accuracy of such information.

Representatives of a broker-dealer or investment adviser may only conduct business in a state if the representatives and the broker-dealer or investment adviser they represent: (a) satisfy the qualification requirements of, and are approved to do business by, the state; or (b) are excluded or exempted from the state’s licenser requirements.

An investor may obtain information concerning a broker-dealer, an investment advisor, or a representative of a broker-dealer or an investment advisor, including their licenser status and disciplinary history, by contacting the investor’s state securities law administrator.

The financial calculator results shown represent analysis and estimates based on the assumptions you have provided, but they do not reflect all relevant elements of your personal situation. The actual effects of your financial decisions may vary significantly from these estimates–so these estimates should not be regarded as predictions, advice, or recommendations. Mahoney Asset Managment does not provide legal or tax advice. Be sure to consult with your own tax and legal advisors before taking any action that would have tax consequences.

SECURITIES: ARE NOT FDIC-INSURED/ARE NOT BANK-GUARANTEED/MAY LOSE VALUE
This information is intended for use only by residents of CA, CT, DC, FL,, MA, MD, MN, NC, NJ, NY, OH, PA, and VA. Ken Mahoney may only conduct securities business with residents of the states and/or jurisdiction for which they are properly registered.

Securities offered through Newbridge Securities Corporation, member FINRA, SIPC.
Investment Advisory services through NFSG Corporation an SEC Registered Investment Advisor.
Office of Supervisory Jurisdiction: 1200 N. Federal Hwy., Ste. 400, Boca Raton, FL 33432. Phone 954.334.3450 Fax 954.489.2390

Specific recommendations can only be based on review of a number of suitability factors including but not limited to the investors financial profile, investment objectives, risk tolerance and the investors review of appropriate offering documents. Past performance is no guarantee of future results. To help you make informed decisions, we provide you with essential disclosures, such as Regulation Best Interest (Reg BI), the Client Relationship Summary (CRS), and Form ADV. Linked sites are strictly provided as a courtesy. Newbridge Securities, Inc. does not guarantee, approve nor endorse the information or products available at the sites, nor do links indicate any association with or endorsement of the linked sites by Newbridge Securities.