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
Let us
help you pass on what's taken a lifetime to build by requesting a Free
Consultation below.