Successful Transitions Begin With a Plan
Your daily routine is filled with decisions that impact many lives including family, employees, clients, and vendors. The range of considerations – emotional, mental, and financial – is complex. How can you evaluate, prioritize, and quantify this complexity? If you are like most owners 60%-80% of your wealth is in the business. Your personal wealth and security
This six-step process is a framework in which we educate you on each of your options. We help you clearly identify and quantify solutions so you can design a plan that can work best for your goals.
The transition process begins with setting goals and asking some basic questions: Can you afford to exit your business and maintain your current lifestyle? What is your timeline? Do you want to remain in the business or leave? Will you transfer internally to a family member or key employees? What risk do these options pose to you? Are you thinking and planning in pre-tax or after-tax dollars? Will you have enough to support your lifestyle beyond your working years?
Successful transitions don’t happen without thoughtful preparation. Where to begin planning for the next 5, 10, or 15 years? The investment, insurance, tax, legal, and valuation considerations require specialized knowledge and a process to be sure the pieces of the puzzle are working in unison. Internal and external transfer options generate different values and tax consequences. What range of values can you expect under your best, likely, and worst case assumptions? Your options will be limited without a process, preparation, and a plan.
Will You Be Left With a Value Gap?
Analyzing your current savings and the asset base required to fund your future spending needs defines the Value Gap. If you run expenses through your business this will require adjusting those expenses
Often Significant Equity is Required from the Business
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Most small business owners contemplate the future of his or her business. Because “the business” usually the wealth generator and a large portion of net worth, many estate planning issues can affect the company’s future stability. A business succession plan is...read more
A Buy-Sell agreement (BSA) serves several key purposes for business owners. A well-articulated BSA creates a ready market and liquidity to a selling owner, and should establish price, terms, and financing for the transfer. In short it spells out a process so that all...read more