Why Do You Need Succession Planning?
Just as families must plan and prepare for transitions from one generation to the next, so must businesses.
We spent a lot of time, money, and energy building up our business, what do we want to happen to it after we are gone?
Whether we have decided that it is time to move on to another business, time to retire, or we are considering what will happen after we pass away, it is vital to start thinking about that transition now.
Often we put ownership interest in revocable living trusts so that it can pass as part of the estate. That solves the ownership/control issue, but it does not solve the problem of finding someone to take on the key tasks that you currently perform for our business.
To ensure that business continues well after your exit, we typically employ various tools.
Succession Tools We Often Use:
- Buy-Sell Agreements
- Promotion internally
- Life insurance to allow employees to purchase the company
- Partnership buy-outs
- Locating possible partners for a merger
- Placing ownership in trust