There are many elements to an effective Estate Plan or Business Succession Plan. In order to achieve success with your Estate Planning and Business Succession Planning there are a few key areas to understand.
Estate Planning • Crisis Succession • Business Succession Planning
Could your business survive a heart attack?
Have you given serious consideration to the consequences of the loss, either temporary or permanent, of your partners in business? Or of the effect on the business of the absence of somebody who plays a major part in its continued success?
Possibly not. Surveys show that less than 30% of business owners have any sort of succession plan for that business.
We are serious about the future continuity of your business and recognize that it is the people in business that make the difference. Without proper planning, unexpected disasters can have major financial and emotional impact upon people’s lives, not just the life of the business.
- A Business Succession Plan is a financial and tax plan that will:
- Realize your assets in the business at a time when you or your beneficiaries need them,
- Give your business every chance of survival when you, or your partners, are gone or suffer long term illness,
- Ensure that families related to the business receive adequate compensation for the true value of their interest in the business,
- Fund the transfer of business interests to ongoing partners,
- Avoid you having to run the business with someone not of your choice,
- Provide a ready market for your business interests,
- Structure your affairs to reduce unnecessary capital gains tax and income tax being paid by your beneficiaries.
We want to help you to secure the future success and continuity of your hard-earned assets in your business.
With this purpose in mind, we use our years of experience to help you in devising a specific to implement a successful Business Succession Plan for the needs of you and your business.
What If You Don’t Have a Business Succession Plan?
- The new shareholders may insist on being involved in the business, but may be inexperienced or ineffective.
- The new shareholders may want the remaining shareholders to buy out their shares.
- A price may need to be put on those shares at a time of upheaval.
- The remaining shareholders may end up doing 100% of the work, but keeping a lesser percentage of the profits.
- The business may need to hire a replacement while part of the profits are distributed to a non-involved party.
- The family of the deceased shareholder may end up dependent on the future dividends declared by the business.
- Creditors may call in their loans.
- The customers and employees may change their view regarding the continuing value of the business.
Don’t be a victim of business euthanasia, have a plan and use it!