Exit and Succession Planning


Your business is not just your pride and joy but a major source of income for you, your family, and your employees. While the business is a large part of your life today, the reality is that someday you may want to retire, step back from the business to concentrate on new ventures or you could become disabled or unexpectedly pass away. What would happen to your business if you were no longer around to run it? Putting an effective exit and succession plan into place allows you to take the guesswork out of transferring ownership, and provides peace of mind that your business, and your family, is taken care of.

┬áIf you’re like most business owners, you may plan to pass your business on to your family or sell it to co-owners. Ninety percent of the 21 million U.S. businesses are family owned. Yet only 30 percent of family-run companies today succeed into the second generation, and only 15 percent survive into the third (Source: SBA.gov). A major reason for this is the tax cost of passing on ownership.

Just as it was when you started your business, the key to successfully passing your business on is a well thought out plan. A well-designed exit and succession plan can help meet your objectives and address management, control and funding of the business as well as coordinating with your personal estate plan.

What constitutes an effective succession plan depends on your particular objectives. Every plan begins with you deciding how you want to transfer your business. Based on those objectives, there are many strategies that can help you assure a smooth and complete transition of your business to new management and can control the tax burden for the new owners.

Begin building your plan by contacting our group of financial professionals! We can guide you through the valuation process, recommend options that can help you achieve your objectives, provide vehicles for funding the plan, and much more!