Succession Planning

Whether it is a family owned business or a small to mid-size business, succession planning needs to start at least three years prior to the planned retirement date.  Failure to plan will only lead to undesirable results, and in the case of a family owned business, may cause greater stress in the family dynamics.

At SPH we have the years of training and knowledge to help you with this critical planning.

The Key – Start Early

We cannot emphasize this point enough.  Too often, especially in family-owned businesses, we discover poor planning.  Failure to include all key parties in the succession discussions usually results in a weak plan leading to unhappy participants.

You need to include not only any key employees, managers and the successor(s) but also family members.  You could discover that your eldest daughter may have a desire to be involved.

Issues to be Covered

Early planning enables you to:
  • Maximize tax savings through such vehicles as the capital gains exemption
  • Keep as much of your personal assets as possible
  • Maximize the proceeds you will receive from the sale
What Other Issues should you consider:
  • Always use a lawyer to smooth the legal issues of the transfer
  • Consider all the tax implications
  • Is the potential successor properly trained and does he/she need help with financing

Our Method

We will diagnose all the details and background of each unique situation.  We want the transition to be on your terms and not someone else’s.  We will have discussions with the successor(s), family or otherwise, in order to ensure open and fair communication between all parties.  From these meetings and discussions we will devise a succession plan which will not only ensure that your personal goals are considered but that the right person(s) has the best information and skills to carry on your business.

Contact a professional today to discuss your plan and options.