As baby boomers age into their 60s and 70s, more of them are preparing to leave their businesses behind. In order to do this, baby boomers have to recognize that a lead time of at least 3-5 years is actually their best friend in the planning process.

This allows you time to carefully consider all of your options and to put the steps in place to achieve success with passing on the business to someone else. Ownership succession in terms of selling outright frees the owner from future risk and locks in financial obligation of the buyer, providing cash to pursue future goals for the baby boomer.

Management succession, which allows the individual to retain some level of ownership and risk, allows for transition into and through management a family and employees seeking the best positions moving forward. The key is that a long range planning option can help to maintain business value, improve employee confidence and cement a family legacy by providing financial opportunity for philanthropy.