Business End Game Is Important Even For Physicians

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WealthManagement.Com wrote an article about retirement options for wealth advisers that could also apply to business owners in general. They give two options for those retiring: participating in a “sunset program” or “[selling] your business on the open market.”

A sunset program allows owners, “the opportunity to formulate a retirement strategy whereby they can actively select a younger advisor or team to take over the business and, over a period of time, be paid by the successor and eventually ride off into the sunset.”

Benefits for this approach include:

1. One’s assets are more likely to remain with the business
2. Encourages the retiring person to form teams, which can increase productivity
3. Keep the retiring person happy, which can also increase productivity
4. An agreement can be made about what information or clients the retiring employee takes with him

However, selling the business may be beneficial for those who don’t “want [their] business to remain at the current firm, or [someone] who has been independent for some time.”

Summary By MedicalGroups.com

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