Considerations for Transitioning Your Business

There are several things a business owner should consider before deciding how they would like to transition their business to the next generation, company management or outside private equity.  In many cases these considerations should be thoughtfully considered in connection with a business owner’s estate plan.  This will allow for the movement of appreciating assets prior to their increase in value and allow for an exit event to fund trusts that may be established to hold those assets.

In addition to estate planning considerations, there are other operational matters that should be addressed to avoid potential due diligence issues that could arise during a sale or other type of exit event.  If these items arise at that point of the process, they can often impact the overall value of the organization and, depending on the magnitude of the issue, it could kill the deal process.

Other areas to address include quality of financial statement information, evaluation of internal control processes, IT security effectiveness including disaster recovery plans and testing, as well as the timing of when a transition event would ultimately occur.  It is critically important that you are able to work with a trusted advisor to ensure that you are prepared to address these issues and confidently respond to potential buyers’ questions related to a variety of areas.  Often, just going through the process of evaluating various areas of your business can lead to greater self-awareness of improvement and efficiency areas in your business that you may not otherwise consider, as well as leading to greater clarity of your overall goals.

Schneider Downs has a team of experienced and qualified advisors who assist clients in these areas.  Please contact your Schneider Downs advisor or the individuals listed on our website to start a discussion.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2023 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on
EV Tax Credit Overview and Reference Guide
Government, Tax BY Austin Nace
Foreign Investment - 5-year Filing Due - Form BE-12
IRS Introduces Safe Harbor Method for Accounting Expenses in Natural Gas Infrastructure
SECURE 2.0 Act – Section 302. Reduction in Excise Tax on Certain Accumulations in Qualified Retirement Plans
Internal Revenue Service Mandates Electronic Filing of Form 8940 through
What's Next: A Universal Charitable Deduction?
Register to receive our weekly newsletter with our most recent columns and insights.
Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us
contact us

This site uses cookies to ensure that we give you the best user experience. Cookies assist in navigation, analyzing traffic and in our marketing efforts as described in our Privacy Policy.