Business Succession Planning

When looking at a closely held business owner’s estate, the business interest is often the single largest asset. It is usually used to provide the majority of current income and support to the family and will be looked at as a source of income in retirement and a legacy at death.

At some point, a business owner will have to leave his or her business, either voluntarily or involuntarily. Although they can’t always control when they will leave their business, several aspects can be controlled upon their departure. If you ask a business owner, they would prefer to control how much and how quickly they will get paid for their business interest upon their retirement, death, or disability.

Additionally, any remaining owner(s) will also want control over who may become future business partners and/or the purchase price and the terms of payment of any interest that they must purchase.

A business owner spends a lifetime building their business, and they plan on that business being their legacy. That is why they need to create a plan today so their families will not be burdened with the business after the owner’s death.