If you own a family business, retirement is not simply a matter of deciding not to go into the office anymore. You’ve got some critical questions to answer like…
“What happens to the business when you’re no longer running it?”
“When is the right time to sell or transfer your ownership interest?” and…
“Will you have enough money to retire?”
Sensitive topics that must be dealt with.
The family dynamic complicates the entire transition because of the emotions and relationships involved. Most people are uncomfortable discussing topics such as aging, death, and personal financial matters.
Comfortable or not, succession planning should become a priority for any family business owner, especially 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 family discord or estate taxes – 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.
We help you with these 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’s going to run the business when you’re gone? Management and ownership are not one and 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’re 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 that they feel they a getting an equitable and fair share of the pie.
What we do for you…
- Once we understand how you feel about the key issues above, we begin constructing your succession plan focusing on these 5 issues…
- Business Valuation
- Business Restructuring
- Tax Consequences
- Retirement Projections
- Tax Projections
Get in touch with an Tom Price today! Call or Email Tom Price 615-385-0686 or Email Tom