While your business may be running along smoothly today, an important, but often overlooked facet of any successful business, is putting funds away for life after business. Can you count on the proceeds from the sale of your business to keep you financially independent during your retirement? How will your business be affected by significant challenges including increased competition, rapidly advancing technology and changing regulations? It is important for business owners to have a separate savings strategy to ensure they have sufficient funds for their retirement.
In the case of a corporation where one of the shareholders is retiring, funding to repurchase the shares and provide income to the retiring shareholder may come from a number of sources. A loan may be arranged at the time of retirement by the corporation with the proceeds paid to the retiring shareholder in exchange for the outstanding shares. This strategy may place a significant burden on the business and its ability to grow in the future. If there are a small number of shareholders this strategy may also have significant tax implications for the remaining shareholder(s).
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Planning your exit strategy | Columnists | Yorkton News Review, Yorkton, Saskatchewan:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
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