Business Succession Planning

We help owners of family and closely held businesses effect orderly and affordable transfer of businesses to the next generation or key employees.  More than 70% of family-owned businesses do not survive the transition from founder to the second generation.  Through careful advanced planning, we can help business owners accomplish the objective of seamless and profitable transfer of business interests to whomever they want.

Failure to plan could result in significant financial losses and potentially result in the loss of the business itself.  Upon the death of a business owner, the owner’s estate could potentially be forced to pay one half the value of the business in estate taxes.  The resulting tax liability may force the estate to either liquidate or take on significant debt to pay off debt.  As part of the business succession plan, we help our clients figure out how estate should handle the tax liabilities.

Succession planning also involves devising an exit strategy for the business owner.  Being your own boss means not having the luxury to immediately quit when you are ready to move on or retire.  Often much of the business’ worth will come from the experience and knowledge you have amassed. We focus our clients to plan for a whole host of legal and business management issues that need to be address for a successful transition.

Who will take over your business? It is very likely that the best person to take over your small business is either a family member or a key employee.  Identifying future owners early is important for the purposes of making sure that they have sufficient means and training to purchase and run the business when the right time comes.

For most business owners, the majority of their net worth is tied in their business.  Our goal is to make sure that to whomever you transfer your business to, that you you have enough money to retire or pursue your other interests.

Five to ten years of advanced planning is a requirement for most successful transitions. The sooner a client plans their succession the smoother the process.  Because our goal is to help our clients get the maximum value for their business, we recommend clients begin planning process 5-10 years in advance of their departure from the business.

Our clients and their families have invested a great amount of their time, money, and soul into their business.  Our job is to make sure you don’t needlessly waste what you have worked so hard to build.