Small business owners face a myriad of pressures and responsibilities. From strategic planning, to hiring and firing, to capital allocation decisions, there is never a lack of things to be done. In the midst of growing and managing a successful business, often times a few important items get pushed into the background. How will the owner transition the business as he/she enters into retirement? And how will the owner’s wealth be extracted from the business? Two simple questions with potentially complex ramifications.
Transitioning a business can take many different forms. Some owners have a strong desire to see the business remain a “family” business preferring to pass ownership and management to the next generation. Others may choose a sale to a third-party feeling it's the easiest and most direct way to extract their wealth for maximum value. Regardless of the direction taken, many qualitative and quantitative issues must be addressed. A short list of just some might include:
- What is my business worth?
- What are the strengths and weaknesses of the family member(s) that the business may be passed to, and what new family dynamics might this transition create?
- How will the buyout of the business be funded?
- What is the most tax-advantageous way to structure the sale?
- When should I begin positioning my business for sale?
- What concrete steps should I take to prepare my business for this transition?
- How do I ensure that my employees are taken care of through the transition and after the sale?
The thought of sorting through all of these issues can be daunting. Thankfully, PYA Waltman Capital can help! Through our affiliation with PYA, the largest CPA/consulting firm in Knoxville, Tennessee, we offer small business owners an unmatched array of services to guide them through this process. From valuation services to determine the value of the business, to tax expertise on the proper structure of the sale, to real estate experts to provide counsel on real estate holdings, to business transition experts to guide you from the positioning phase to ultimate sale of your business, PYAW stands ready to help you transition your business. Give us a call today. 865-693-6301