You’ve built a small business in the Kansas City area. Your blood, sweat and tears have kept your business surviving through ups and downs. You are on the verge of retiring and want to ensure a smooth transfer of ownership. As a business owner who has poured their heart in to being successful, a succession plan is an excellent tool to keep that business profitable through the transition. After all, you’ve worked hard to build this business.
Succession planning by definition is the development of a strategy for the passing on of leadership roles in a business. This can be to an individual or group after the company’s most important leaders move on to new opportunities, retire or pass away. Establishing a strong business succession plan is beneficial for most business owners and is absolutely necessary for some.
When creating an effective succession plan an attorney will help the business owner craft a plan that suits your business, personal and tax objectives in connection with the transfer whether it be to a family member, or a third party.
When a client approaches me on this topic, I often share the benefits of having this plan in place. A succession plan addresses key issues that face a business in the transition phase.
- Allocation of control and/or value
- Identification of potential buyers and/or beneficiaries
- Determining business ownership and asset transfer strategies
- Strategic Tax Planning
- Ongoing business management and Incentives.
Proper business succession planning requires careful preparation. During succession planning your attorney can aid you in answering questions such as; Is your successor passionate about your business; Will you gift your business; What are your future expectations for the business; What is your timing for the transition; Do you understand your successors questions or concerns in taking over?
These are just a few of the questions that arise in transition planning.
To help facilitate your succession plan, it is important to enlist the help of a skilled advisor such as a business attorney. Let Jeff Coppaken utilize his expertise to guide you in creating your succession strategies. Call for your free consultation, 913.225.8951.