Succession planning is an unavoidable issue facing every closely held business.  It is a process that is more than mere estate or retirement planning.  A succession plan guides the business owner to deal with each vital facet of perpetuating the business.  It should include business and financial management, stock ownership and family participation planning. 

Succession planning maps out a process of transferring equity ownership and management responsibilities in the event of retirement, death/ and or disability of the business owner.  It also plans for transfers via sale to existing shareholders, sales to management, sales/gifts to family members, or the sale/merger with outside interests.  In addition, implementing a comprehensive succession plan puts systems and procedures into place that will assist with management transition issues. 

Planning for the future of a business can mean the difference between success and failure for the continued viability of a business.    

Succession planning will help to: 

• Mitigate future shareholder disputes
• Allow the business owner to plan for shareholder events
• Eliminate the uncertainty for future financial obligations
• Protect the continuity of the remaining principal shareholders
• Reduce income/estate taxes for both the buyer and the seller 

A properly structured plan will include:

• A clearly defined leader to succeed the current owner and assume responsibility
• A formal business evaluation which should be kept up to date
• A buy-sell agreement
• A plan to guide the company through the transition process

Our team of experts will: 

• Evaluate current arrangements, shareholder agreements and key management incentive plans
• Identify objectives of potential purchasers
• Determine valuation criteria and perform a valuation
• Identify funding mechanisms based on the selling shareholder’s liquidity needs
• Explore deferred compensation to selling shareholder as a component of the post sale income stream
• Coordinate drafting of legal documents