Succession Planning from a Financial Perspective
December 26, 2017 by Jeff Farrington, MSM
When you decide it’s time to sell your house, what’s the first thing you do before you contact a real estate agent or list it yourself? Right. You get it appraised so you know how much you can reasonably expect to receive from the sale.
When beginning to plan for retirement and the succession of their company, many business owners may not take this logical first step because they feel confident they already know what their company is worth. Realistically, however, they are usually way off base.
We are often one of the worst judges of what our own business is worth. We put years of sweat equity into our companies which can skew our perspective. Likewise, we may have heard what a competitor sold their firm for, not realizing that it’s not an apples-to-apples comparison, or worse yet, the information you heard isn’t accurate.
That’s why when you want to put a value on your company, use a professional. The ABV (Accredited in Business Valuation) credentials are only for CPAs who have extensive experience and knowledge in providing proper business valuations. If you’re serious about putting together a strategy on the financial portion of succession planning, start with a proper valuation.
Gordon Advisors’ ABV accredited CPAs have extensive experience and take the time to thoroughly understand you, your business and your long and short-term plans. We examine every aspect of your company to make the most astute evaluation and develop an appraisal that is realistic and fair. Give us a call today to find out how we can help you professionally assess your company’s true value and set you on the road to retirement.