In dealing with succession planning, there are two options – you either plan for it properly and ensure you control how it happens, or you ignore it, leave it to chance and hope for the best. Many owners simply leave the succession planning discussion too late resulting in a hastily cobbled together plan that does not maximize the company’s strengths and often times leave family members and management without clear direction. It invites uncertainty, conflict and can threaten the survival of the company. In worst cases, the value of the company suffers greatly and is sold for a fraction of what it could be worth.

Succession planning simply means passing on ownership of the company you’ve built. It can take many forms, including:

  • Passing on control and operations to family members
  • Passing on ownership to family members and having a strong management team in place
  • Selling to a 3rd party
  • Taking on a strategic partner
  • Selling to an employee group

A properly thought out and well executed succession plan will

  1. Provide security for your family
  2. Increase the value of your business
  3. Protect the legacy of your business
  4. Deal with unexpected events (illness, death, disability)
  5. Ensure your employees are secure

You’ve put in the hard work, spent the many hours, made sacrifices and potential risked everything to build your business. It can take years to put a proper plan in place.

Working with the advisors at Rise CPA, we will

  • Work with you to identify your goals and objectives
  • Review the options available to you and discuss the various tax, financial and family considerations of each
  • Help in setting goals and milestones to ensure the succession plan is being done
  • Work with other advisors (bankers, lawyers, insurance, investment) to ensure all aspects are considered
  • Assist where needed in discussions with management and family members
  • Create an effective estate plan that ties into the overall succession plan
  • Monitor the plan regularly to ensure it is always current with the changing business environment, tax rules and family circumstances

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