Phased Transfer of Ownership
Planning for retirement can (and ideally should) start many years before you want to retire. If you plan anywhere between 5 and 15 years ahead, you could transition the ownership of your business to more junior colleagues in a phased way over time. You get to stay part of the business for the time period which suits you, and you can train and mentor colleagues as they purchase bite size chunks of the business over time. This model is entirely flexible and you can transfer any portion of the business, over any time frame, to as many or as few successors as you wish. The transaction can be funded by the incoming owners with any combination of personal funds, personal borrowing, borrowing against the value of the business or “deferred consideration” where you fund the transaction and receive your payment out of future profits.