What Are The Benefits Of a Sound Succession Plan?
- Ensures a proper valuation of the business interests, reducing the possibility of conflict between successors.
- Drastically reduces the cost and time required for settlement of the deceased’s estate.
- If properly funded, can provide cash flow for operations when the business needs it the most. This can prevent the forced liquidation or sale to a third party due to cash flow.
- Elimination of conflict between active and inactive children.
- Ensure ownership remains within your bloodline.
The Bottom LineBusiness owners seeking a smooth and equitable transition of their interests should seek a competent, experienced team to assist them in this matter. If your objective is to continue the business after death, and not have it liquidated or sold to a third party, several options and considerations are possible.
Transition To Family Or Family Sub-Groups
- Active vs. Inactive Ownership
- Conflicting Interests
- Estate Equalization
- Criteria (age, education, time in business)
Transition To Employees
- Key Employee Retention to assure they remain at the company.
- Equitable balance between employee ownership and value passed on to heirs.
Management Buy Out
Qualified team of people, hand-picked, that can continue operations and handle the proper administration of your succession plan.