Succession Planning

If you own a family business, retirement is not simply a matter of deciding not to go into the office anymore. You have critical questions to answer, such as: What happens to the business when you are no longer running it and will you have enough money to retire?

The family dynamic complicates the transition because of the relationships and emotions involved. Most people are not comfortable discussing topics such as aging, death and financial affairs.

Succession planning should be a priority for any family business considering that more than seven out of ten family-owned businesses fail to survive the transition from founder to second generation, typically falling prey either to estate taxes, family discord or both.

Developing and implementing a well-designed succession plan is essential to the survival of a family business from one generation to the next.

CBH can help you with the following key issues:

  • Keeping it in the family: Are you going to pass the business on to your family or sell it to a third party? We help you weigh the advantages and disadvantages of each of these options.
  • Who is going to run the business when you are gone? Management and ownership are not the same. You may decide to transfer management of your business to just one of your children but transfer equal shares of business ownership to all your children, whether they are actively involved in the business or not.
  • Minimizing the tax bite: The tax burden when transitioning a family business can be significant. The challenge is that a family business is not generally a liquid asset, but taxes are typically due when ownership is transferred.
  • Making it fair: Transferring family ownership often adds a tremendous amount of stress to individual family members. We talk with each of the family members to ensure they feel they are getting an equitable and fair share.

What we do for you:

Once we understand how you feel about the key issues above, we begin constructing your succession plan focusing on the following five issues:

  1. Business Valuation
  2. Business Restructuring
  3. Tax Consequences
  4. Retirement Projections
  5. Tax Projections

Let us help you pass on what's taken a lifetime to build by requesting a free consultation below.

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