Have you thought about your business succession plan? A good succession plan for any business will ensure a smooth transition from one owner to a new owner.
A good succession plan outlines who will take over your business when you leave and it is important that this has been thought through and planned in advance. In particular when it is a family business thinking ahead will avoid problems with aspects such as tax transfer but will also consider differing family interests.
There are many benefits for a business and its owners to think ahead and plan strategically for an orderly transition of management or ownership. These benefits are:
- Survival and growth of the business or its assets under the current structure or after sale or restructuring.
- Preservation of harmony when the business is family owned.
- Reduction or elimination of estate and income taxes.
- Facilitation of retirement for the current leadership generation,
- Ability to retain control of the process instead of having someone else make the decisions.