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What IS Succession Planning?

Selling your business represents the culmination of years—sometimes decades—of hard work, risk-taking, and passionate dedication. Yet many business owners approach this critical transition without the preparation needed to maximize value and protect their legacy.

Patrick Leary, an experienced CPA specializing in privately held companies, takes us deep into the realities of business succession planning. He reveals why the process should start years before you intend to exit, beginning with a clear-eyed assessment of your true goals. Are you looking to maximize financial return? Transfer to family members? Ensure your company's continued presence in the community? These foundational questions shape every subsequent decision in your exit strategy.

Financial transparency emerges as perhaps the most crucial element of a successful sale. "Nothing will derail a transaction faster than not having good books and records," Patrick warns. Buyers require confidence in your financial reporting, making clean, reconciled accounts and organized documentation non-negotiable. The Letter of Intent (LOI) also demands careful attention, as its structure—particularly whether you're pursuing an asset or stock sale—carries enormous tax implications that could mean hundreds of thousands or even millions in difference to your after-tax proceeds.

Beyond the financial and legal aspects, Patrick addresses the emotional journey of selling a business that's been "part of the family" for decades. Many owners struggle to separate their emotional attachment from market realities during valuation discussions. Even after closing, the transition often requires sellers to remain involved for months, making the sale a process rather than an event.

Don't wait until you're ready to exit to begin planning. Connect with experienced advisors now to implement value-building strategies, optimize your tax position, and ensure you're fully prepared for the most significant financial transaction of your life. Your business legacy deserves nothing less.

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