Approximately 90% of U.S. businesses today are family owned or controlled. For many owners, the business represents their largest financial asset. If you are a business owner at some point you must address succession planning.
There are many reasons for this: For example, you may want to sell all or a portion of your business to raise funds for retirement or to launch a new business; you may want to ensure the smooth transfer of your business to younger family members; you may wish to structure your ownership to reduce inheritance, estate and gift taxes.
A well thought out succession plan should address:
1. business and organizational issues;
2. the owner’s financial and retirement goals and needs;
3. relationship issues involving family participation or non-participation in the business;
4. liquidity considerations and income; and
5. estate planning considerations.
Your business succession plan should be created well before you’re ready to retire or sell the business. And, it should be periodically reviewed and updated as the business evolves. This will help give you and your family peace of mind. A well thought out succession plan will help you avoid unintended consequences. Proper business succession planning is an excellent way to help maximize the price obtained when you sell your business. By implementing a business succession plan you can avoid a forced transfer or sale of your business at a distressed price due to unexpected circumstances, such as disability or untimely death.
Getting Legal Help
Experienced Business Succession Planning Attorney, Elga Goodman, can guide you through the succession planning process and can prepare a comprehensive succession plan that reflects your unique needs and wishes. Contact us today at 973-841-5111.
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