SOURCE: RBTK LLP

RBTK LLP

January 21, 2015 13:56 ET

Succession Planning for Baby Boomers Is Critical

How to Successfully Retire Is a Question That Many Boomers Are Facing

SAN DIEGO, CA--(Marketwired - Jan 21, 2015) -  With as many as 10,000 baby boomers reaching the age of retirement every day, many are just realizing they are late in planning for a successful retirement and their exit.

According to Kevin Brown, partner of RBTK CPA firm in San Diego, "planning for the transition of ownership when you retire is critical and key considerations should be taken into account." First, plan early. It is never too early to start thinking about who and how you will be transfering your business over to. Next, you need to understand what makes up the value of your business and how to increase that value.

According to Brown, "succession planning is often overlooked, but it should not be." The percentage of businesses currently listed in the US for sale with revenues of less than $30 million that will actually sell is less than 8%. The percentage of business owners who know the value of their enterprise and how it will be derived is less than 5%. The percentage of business owners who have a detailed exit plan is less than 13%. These percentages show the importance of planning, and planning early, for a smooth transition of your company. 

In any business transaction the view of the owner and the person interested in taking over the company are widely divergent. The owner is personally invested and focused on being rewarded for building a company that has stability, together with some level of opportunity. Whereas the buyer's major concern is minimizing risk. The lesson, Brown says, "if you own a business, see it through the eyes of a buyer or bank and focus on the risk and points of fragiity and weakness. Consider obtaining a 'Maket Value Assessment' to understand the current value and marketability of your company."

Since founding in 1981, RBTK has made business succession one of its specialties, while building a thriving business dedicated to fulfilling its mission of building quality relationships and providing clients with the ability to obtain their long-term financial and business goals. For more information about how to prepare for a succesful business transition, contact Kevin Brown of RBTK CPA firm at 858-430-0300 or you can visit www.rbtk-cpa.com.

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