When you’re a family business owner, retirement isn’t a simple issue of not reporting to work anymore. You will need address some other serious concerns such as:
- What will be in the future for your business when you are no longer playing an active?
- “Are you sure your finances are in suitable to shape to comfortably retire?
Connections to family can make the whole transition difficult because of the relationship dynamics and emotions involved. Many people are uncomfortable discussing issues such as aging, death or financial affairs within the family.
Upsetting or not, succession planning should take precedence for any family business given statistics that more than seventy percent of family-owned businesses do not make it through a changeover from founder to second generation, typically failing due to estate tax problems or family conflict (or both).
Creating and carrying out a well-prepared succession plan is key to the survival of a family business from one generation to the next.
We offer solid advice on these fundamental issues –
- Maintaining family ties in the organization. Are you going to leave the business with your family or sell it to a different party? We help you consider the advantages and disadvantages of each of these options.
- Who will supervise business operations after you leave? Ownerhship and management play uniquely different roles. You may decide to assign the management of your company to just one of your children but pass on equal shares of business ownership to each of your children, whether they’re actively managing the business or not.
- Reducing the tax burden. The tax fees can be detrimental to a family business when undergoing transition. As a rule, family business is not generally a liquid asset, but taxes are applied when ownership is transferred.
- Making it run as smoothly and fairly as possible. Transferring family ownership often introduces stress amoung individual family members. We talk with each of the family members to make sure they feel confident that they are getting a reasonable and equitable share of transfer.
What we offer your family…
Once we recognize how all family members involved feel about the above matters, we begin devising your succession plan focusing based on these 5 issues…
- Retirement Projections
- Business Valuation
- Business Restructuring
- Tax Projections
- Tax Consequences