If you own a small or mid-market business, retirement isn't simply a matter of deciding not to go in to the office anymore. You've got some critical questions to answer like...
"What happens to the business when you're no longer running it?"
"Will you have enough money to retire?"
Having family involved in the business can complicate 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 small or mid-market businesses fail to survive the transition from founder to second generation, typically falling prey to lack of innovation, poor management or estate taxes, or family discord.
Developing and implementing a well-designed succession plan is essential to the survival of a long-term business.
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 the same; they both fall under two distinct labels. You may decide to transfer the 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 are getting an equitable and fair share of the pie.
Third Party. Go to the EXIT ADVISORS, LLC link to learn how we can assist you with all M&A matters.
What we do for you...
Once we understand how you feel about the key issues above, we begin constructing your succession plan focusing on 5 issues...
Business Valuation
Business Restructuring
Tax Consequences
Retirement Projections
Tax Projections