Throughout the estate planning process in Illinois, one of your greatest assets is likely your family business. It may be wise to plan out who your successor will be long before you foresee the need for one. That way, you have control over the decisions-making process, and you have time to research the best options for your family and your business. Here at Zapolis & Associates PC, we understand how valuable family businesses are, and we seek to reach the best possible arrangement for all parties involved.
According to Merrill Lynch, one of the first steps to take when determining the future of your company is to assess your financial needs and the company's worth. If the business cannot function without your regular, active involvement, it may not hold much value to a potential buyer, even your children. However, if it is independently sustainable, you may wish to bring in an assessor to determine its worth. You should also know how much annual income you will need to live once the business is no longer in your hands. Do not forget about benefits you may have received in addition to your salary, such as insurance and similar perks.
Once you determine to sell of your business, whether to a family member or another person, you have several options for how to do it. You may wish to retain some involvement on day-to-day operations, or you may wish to step away completely. One option could be to join the board of directors. Whichever approach you take, be sure to discuss your wishes with a potential buyer beforehand. More information about planning for your company's future is available on our webpage.