Business Succession and the Graceful Exit

As trusted advisors, our clients depend on us for timely and well-informed advice.

It is inevitable that all business owners will eventually exit their business; it is simply a matter of when, how and under what conditions. Ultimately, the desired result for exiting a business is to be able to dictate the manner of achieving the business owner’s goals and objectives.

Our goal in working with our business clients is to help plan for the single most critically important financial event of their lives – the transition out of their businesses. Whether for protection of retirement funds, protections for the key employees remaining in the business, or protection of the business itself, a comprehensive succession plan – involving advisors on tax, insurance and the law – is essential.

In our experience, owners of closely held businesses focus almost entirely on their business operations – making the business work for them and for their customers. Lost in their devotion to their business is their eye on an efficient transition when the exit date nears. The best plans take years to cultivate, and the more time spent on placing the proper people in the right spots and ensuring proper funding of the plan to deal with every contingency, the better. That’s precisely where your estate and business planning attorneys enter the fray.

As estate and business planning attorneys, our expertise is in providing tax-efficient transitions, but with an eye on family and employee harmony. The business owner may have all, some or none of his or her family members able or interested in taking over the business. Often, the business passes to trusted key employees, but just as often, those key employees do not have the funds to provide retirement resources for the outgoing owner. Other times, the business can be sold on the open market, but without the owner in the business after the exit point, valuations can plummet, leading to fire sales. Planning for your business exit strategy now ensures proper valuation of the business, smooth transitions for loyal employees, and better tax planning. Planning on how to fund the plan also grants the business owner, and his or her family, peace of mind both in the event of retirement as well as compensation to the one’s beneficiaries in the event that the business passes to non-family members. We can help. Let us discuss your options with you and our team of trusted professionals.