Business Succession Planning
Business Succession Planning
One of the biggest threats to a business is the transition period between when the founder leaves and the next generation takes control. Many businesses falter, lose value, and even fail completely during these transitions. The best way to mitigate these risks is to have a thorough business succession plan. You have worked too hard to build your business to not have it outlast you.
We work to help you to create a business succession plan that:
- Preserves the Value of Your Business
- Is Prepared With all the Critical Documents
- Is in Harmony With Your other Financial Planning
Just like you don’t run your business without extensive planning, you shouldn’t leave your business without extensive planning.
Schedule your complimentary consultation with Hundman Wealth Planning today.
Preserve Value of the Business
The three major reasons businesses falter and lose value during the transition from the founder to the next generation of leadership is:
- New leadership’s lack of training and experience
- Legal battles over ownership, authority, and management decisions
- Tax liabilities
A business succession plan helps avoid all of these issues. Part of a detailed succession plan involves naming a successor. The new leader of the business can be a family member, a key employee, or a third party. Whoever the next leader is going to be, the transition will be much smoother the more time they have to prepare.
A business succession plan will also make sure all ownership interests and lines of authority are clear. This helps reduce costly legal battles and allows the new leader to focus on running the business, not fending off challenges.
Your business succession plan should also be as tax-efficient as possible. We don’t want your heirs to have to sell the business just to pay estate taxes.
Prepare Critical Documents
The documents you will need for your business succession plan will vary depending on the type of corporate structure you have, who your designated replacement is, and what your plans are for after you leave the business.
A business succession plan often is a mix of different life insurance policies, buy-sell agreements, contracts, and even estate planning documents. Because we take the time to get to know you, your goals, and your business, we create a customized plan that meets your needs and protects your interests.
The best business succession plans anticipate both your voluntary, and your involuntary absence from the business. We make sure all your years of hard work and sacrifice are honored and protected in your business succession plan.
Make Sure all Financial Planning is in Harmony
It is critical that your business succession plan not be at cross-purposes with your estate planning or your retirement planning. We can work with you directly to make sure all of these areas are in harmony or we can also work with your other attorneys and financial advisors.
We want to make sure your business is not destroyed by estate taxes, gift taxes, or even capital gains taxes. This means we look at your overall financial and estate planning when creating the business succession plan. We ensure that the mechanisms are in place to fund any transfers of ownership and that you are protected no matter if you leave the business to retire, or if your health involuntarily forces you from the business.