Business Succession Planning

For a business owner, planning for leaving or disposing of a business isn’t a simple task.

Planning must be done to ensure that the business will continue to provide the owner with retirement money; this includes ensuring that the accumulated value of the business stays intact after the owner’s departure. In business succession planning, it important to note that transferring the management of the business may be different from transferring the ownership of the business. For businesses that involve other family members or long-term relationships, this can be an emotionally difficult decision. A successful business succession plan will address the following:

  • Transfer of Management
  • Transfer of Ownership
  • Buy/Sell Agreements
  • Life Insurance Planning
  • Estate Planning
  • Business Valuation
  • Asset Freeze Techniques
  • Management Coaching

An effective business succession plan should be considered years in advance of the planned departure of the owner. Sometimes, the exit strategy is even considered at the start of a business. If this is a family business, all members of the family should be considered in the planning, not just members who are active in the business. This can prevent later family discord.

A good succession plan in place can ensure that you have funds in place for retirement and the business you built-up will continue to thrive in the hands of its successors.