The Importance Of Closely-held Business Succession Planning
One of the greatest challenges facing a closely-held business (fewer than 10 shareholders) is properly planning for business succession. Business owners may be too busy dealing with everyday business needs to consider the tough issues of succession planning such as:
- Do I want my spouse to own the business when I am gone, or do I want my spouse to be bought out?
- What if my business partner dies? Does the spouse become my new partner?
- Who will be the next operations manager?
- Which of the children will get involved in the business?
The list of issues that business owners should consider is lengthy. Why is it important for business owners to delve into the myriad of issues involved in family business succession planning? If the issues are not discussed and a plan is not put into place, circumstances could devolve after the death of the business owner, which could spell disaster for the business and the family, even possibly resulting in a forced sale of the business.
Where Do You Begin?
The beginning of the process usually involves establishing a value for the business. For qualified businesses, we offer a Preliminary Business Evaluation at our cost, as part of our services.This value is typically only an approximation and should not be used as a substitute for a Qualified Appraisal issued by an attorney, accountant or other qualified financial advisor. The approximate value may be determined by a review of financial statements and the application of a number of standard calculations, or by comparison with sales of similar businesses in the industry. Contact us today for a no-obligation consultation. Together we will discuss protection strategies that can help your company succeed, even if you, a partner or a key employee are unable to work. We know how hectic life is when you are running your own business, so we’ll keep it brief and informative when we meet. What’s the best time to prepare for the unexpected? Right now, of course.
You’ve worked too hard to build your business to let an unexpected event jeopardize your life’s work. Call us soon – it could be the best decision you make this year.