“Your greatest asset is your house,” is a saying you have probably heard before.  But for business owners that may not be the case.

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Recently, a new client contacted me and informed me that he was retiring, moving to Florida, and inquired as to how to wind down his medical practice.  I asked him whether he was planning to simply close up his practice.  He asked confusedly what that had to do with it.

I explained to him that his greatest asset may not be his house, but may be his medical practice and had he considered a business succession plan.  A business succession plan is essentially the identification and development of potential successors to a business and then a plan to transfer that business to the successor for fair market value.

While it is preferable to enact a business succession plan many years before you want to exit the Newspaper ad business for salebusiness, we were nonetheless able to locate a purchaser for this medical practice and turn an asset that he was planning to “wind down” into a several hundred thousand dollar profit.

 

A lesson to be learned here is that if you own your business, it is a valuable asset and that proper succession planning is necessary to maximize its value.

Category : Business Law, Eisner Law Blog

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