Only 5% Of Business Owners Have Useful Succession Plans!
Succession planning allows for the orderly transfer of ownership and management of your business, ensuring that your retirement goals become reality and your business will continue to flourish. Many business owners have a "warm and fuzzy" intention to transfer their business to their family members without assessing their competency or establishing a concrete action and training plan.
Handing the family business over to your children is complex and risky. Preparing it for an external sale is even riskier. Proper succession planning is complex, involving many different issues to consider:
| Transaction Issues | Business Issues | Family Issues |
| Tax issues | Choosing a successor | Fairness |
| Legal issues | Training the successor | Emotions |
| Retirement planning | Roles & responsibilities | Working together |
| Financing | Monitoring progress | Competence |
| Finding a buyer | Dispute resolution | Dispute resolution |
In addition to a more successful transition, planning in advance lets you take advantage of significant tax savings the government allows on the transition of private companies. While tax considerations shouldn't drive all of your decisions, these creative tax structures and estate planning tools enable you to defer (or even avoid) significant amounts of taxes - if you plan early enough.
Beal Consultants can assist with your succession plan by: