Succession Planning Services

We have found in our practice, that we are frequently being asked to address Succession Planning issues including; business valuation, estate planning, marketing and negotiating buy-sell agreements for our business clients.

Regardless of the company structure, our clients are finding that by planning now for the continuation of their business, they are positioning for minimizing estate taxes, continued success and future growth.

Why Succession Planning is So Important

 

The "handing over" or "succession" of a company should be viewed as a process, and the "succession plan" will serve as a road map for partners or heirs to continue in the event of the majority owners' death, disability or retirement.

A business succession plan should be carefully strategized and well executed in order to be successful, particularly with family-run or closely-held companies.

The plan should cover the following key issues:

  • Who will run the business

  • How family members will be involved

  • How successors will be trained

  • How and when control will be transferred

  • How assets will be distributed

10 Steps in Succession Planning

We work closely with our business clients and take the time to understand their unique goals and business needs. Our approach to succession planning incorporates a number of services, depending on the individual situation.

Succession planning services typically include:

  • Business Strategic Plans

  • Founders Personal Financial Plans

  • Business Valuations

  • Structuring and Negotiating Buy-Sell Agreements

  • Estate Planning

Why Succession Planning is so Important

For most entrepreneurs, planning for the continuity of their business enterprise is the ultimate management challenge.

According to a recent survey of CPA's conducted by the Management Consulting Services Division of the AICPA, over 58% of those surveyed nationwide responded that Succession Planning is the major concern of American Businesses today. Inadequate Succession planning was ranked as the biggest threat facing closely-held businesses.

For larger closely-held businesses with sales of $3 million or more, additional threats identified were:

  • Environmental regulations

  • Inadequate succession planning

  • Inability to respond quickly to market changes

  • Succession planning is a lifelong process...it enhances the value of the business.

Succession Planning and estate planning can never begin too soon.

"The final test of greatness in a CEO is how well he chooses a successor and whether he can step aside and let his successor run the company." Peter Drucker

10 Steps in Succession Planning

(Family-run businesses)

  • Establish Family Participation Policy

  • Provide Excellent Work Experience - and No Succession Expectations

  • Commit to Family Business Continuity via Family Mission Statement

  • Design Leadership Development Plan

  • Have an Active Board of Directors Containing Experienced Non-Family Business Leaders, and Use Your Board

  • Clarify Business Strategic Plan

  • Fund Parents' Personal Financial Security

  • Identify Successor of Successor Selection Process

  • Empower Organizational Succession Transition Team

  • Complete Transfer of Ownership Control