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Succession Planning
If you own a family business, retirement isn't simply a matter of deciding not to
go into the office anymore. You've got some critical questions to answer like...
"What happens to the business when you're no longer running it?" and
"Will you have enough money to retire?"
The family dynamic complicates the whole transition because of the relationships
and emotions involved. Most people are not comfortable discussing topics such as
aging, death, and financial affairs.
Comfortable or not, succession planning should be a priority for any family business
considering that more than seven out of ten family-owned businesses fail to survive
the transition from founder to second generation, typically falling prey either
to estate taxes or family discord - or both.
Developing and implementing a well-designed succession plan is essential to the
survival of a family business from one generation to the next.
We help you with these key issues:
- Keeping it in the family. Are you going to pass the business on to your family
or sell it to a third party? We help you weigh the advantages and disadvantages
of each of these options.
- Who's going to run the business when you're gone? Management and ownership
are not one and the same. You may decide to transfer management of your business
to just one of your children but transfer equal shares of business ownership to
all your children, whether they're actively involved in the business or not.
- Minimizing the tax bite. The tax burden when transitioning a family business
can be significant. The challenge is that a family business is not generally a liquid
asset, but taxes are typically due when ownership is transferred.
- Making it fair. Transferring family ownership often adds a tremendous amount
of stress to individual family members. We talk with each of the family members
to ensure that they feel they a getting an equitable and fair share of the pie.
What we do for you...
Once we understand how you feel about the key issues above, we begin constructing
your succession plan focusing on these 5 issues...
- Business Valuation
- Business Restructuring
- Tax Consequences
- Retirement Projections
- Tax Projections
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