Business Succession Planning

Why 67% of closely held businesses fail to survive the first generation!
Succession Planning and Exit Strategies are the most overlooked and underplanned aspect
of strategic business planning.

Succession Planning Process

• Identify and explore potential exit strategies that are coordinated with the client's personal retirement plans. The strategies will balance family financial needs, control issues, risk management and included identification of successor management.
• Identifying and describing the interests of all stakeholders (current owners, potential successors, management, and key employees).
• Understanding and assessing the skills of the business' management team.
• Help all stakeholders articulate their shared values, vision and business mission.
• Identify available, harvestable dollars and a payout timeline which will be agreed upon for the senior generation.
• Develop effective strategies for attracting, retaining and rewarding key employees and/or non-family members.
• Coordinate and identify true need of existing life insurance with proposed family business succession plan. Make recommendations that will minimize potential taxation of life insurance.

5 Steps in Succession Planning Process

• Assemble a team
• Due diligence
• Analysis of interests and objectives
• Generation of options
• Implementation

Exit Strategies Available

• Liquidation of the business
• Sales to "insiders" (other stakeholders or employees)
• Sale to "outsiders" (strategic, financial or foreign buyer)
• Creation of "Benevolent Dictatorship" (pass along to the children)
• Joint venture or merger
• Initial Public Offering (IPO)