Skip Ribbon Commands
Skip to main content

Short-Term Exits, Long-Term Considerations

14/03/2016


​Can I hand the business and all decision-making over within a few weeks and quit on short notice when I am ready?

Yes, you can. But should you? Would you like to be a passenger in a plane that was designed in a big hurry?

The good news is, with strategic planning, it is possible for all the stars to align and you to exit in short time-frame. Consider the following when determining if this will work for you:

  • There are a multitude of human emotions and relationship issues which will take time to fully evolve and become clear. By the time these feelings do become clear and in those cases where negative issues or personal grievances did arise, it may not be possible to avoid conflict.
  • Certain income tax legislations require careful planning and structure over a number of years in order to gain full benefit for all involved. Rushed planning may eliminate some of your tax saving opportunities.
  • Will you be able to look at all the possible alternatives available to you and determine the absolute best solution, given the short time frame?
  • Is your team of professionals able to provide you with the required level of planning within the short time frame, not only in their own respective specialist fields, but also on the matters which require synchronisation by the professionals of the planning and the resulting combined consequences
  • Are you comfortable going through the entire process, wrapping matters up and not have the ability to make changes to your planning down the road, even when you do not like the results you have to deal with?
  • Bankers, customers, suppliers and employees all become very nervous when the leader exits suddenly. This can compromise the stability of the business long term and the ability of the business to generate sufficient funds to pay you out, if you’re “carrying” or guaranteeing part of the purchase price. Are you financially set up to potentially lose money and still achieve and maintain the lifestyle you want?

For more information as to how you can successfully transition out of your business, contact Eben Louw, CPA, CA at 604.853.9471 or [email protected].