Business owners who do not have a succession plan could be wasting tens of thousands of dollars as a result of additional income taxes and loss of business value. All business owners should have a succession plan in place regardless of their age. A well thought out succession plan will have a contingency framework in case of illness, unplanned early retirement, unexpected economic events, loss of key personnel, and countless other events which cannot be predicted. Each succession plan must be structured to fit the needs of each particular business owner. There’s no “one size fits all” plan available.
A succession plan can minimize tax liabilities and provide cash flow during transition periods. When succession plans are communicated to employees, they can serve as a morale booster for employees to know that their jobs are secure.
Strategies can be employed which increase the value of your business to potential buyers so that owners receive maximum dollar for their investment. However, these strategies must be implemented several years before the owner is ready to retire.
Please contact us at 1-866-287-9604 if you’d like to start a discussion about your succession planning needs.
Posted by Billy Upchurch, CPA/ABV/CFF, CFE, CVA