Business succession planning is essential if you want your business to continue and thrive or be in the best position to be sold after you die. There are several issues to consider when creating your business succession plan:
- Identify the successors to your business, family or otherwise. If you have several children who want to take over, make an honest assessment of your children to see who is in the best position to run the company. If your plan is to sell the business, have possible buyers in line.
- Make sure that your records, customer lists, sales forms, etc., are in order so that the successor can keep the company running during the transitional period.
- Identify key employees and people within the company who are crucial to your company’s success.
- Purchase disability and life insurance.
- Consider a buy/sell agreement.
- Talk to both an attorney and an accountant regarding potential gift and estate tax issues resulting from the transfer of ownership in your business.
To explore family business succession strategies that meet your specific needs, contact our office for a free consultation.
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