A universal truth is that we will all; one day exit our businesses. We will either die at work or we will retire. We will close our doors or we will have generation succession plans or we will sell our businesses. Hard realities. But; truthful.
Uncle Joe: My Uncle Joe started a simple ice cream business after he married my Aunt Eve. The business changed in the early years and ultimately turned into a restaurant supplier in the Northeast that sold not only ice cream machines but many other business lines.
As I grew older; one by one my cousins started to work in their father's business. Ultimately 4 out of the 5 children would work in the business. Uncle Joe went to be with the Lord many years ago now. The same 4 "children" work in his business today as well as many of their children.
To me; that is the American Dream. Most of us are not so blessed to be able to have a business that our children and grandchildren can keep going long after we are gone.
One of the keys to my Uncle Joe's success was good planning. There were no questions or uncertainties after he retired. Everyone knew the plan. It was fair and equitable. It enabled the family to maintain great harmony after the fact.
If you are so blessed that your children can take over your business. Great! But; no matter what you do get a plan that includes financial and legal protections for everyone involved.
Closing the Doors. The sad truth is that not every business can be sold. Some just need to be shut down. Ideally, this will be done years in advance by the owner of the business. Those that leave this to their offspring or their "estate" are what they call "asking for trouble".
Selling your Business. The decision to sell your business can often be a painful one. Even if you stand to make a great profit upon execution; you've put many years of hard work. Real equity and sweat equity.
Private businesses are not unlike public companies in the sense the valuations do not remain uniform or steady over time. Many factors affect the valuation of your business. Many in control of the business owner but many are external to their control.
If you have a home health or hospice agency we are in a unique position to advise you on the sale of your business. Hint: it all starts with planning.