If you have created a successful business, you know it was not just a matter of hard work. It also took budgeting, dedication, and a solid plan. Now that you are thinking of retiring, you need another solid plan. Do you want your heirs to continue to run the business? Are they prepared to do so? Perhaps you would like to turn the operations over to a trusted employee, or sell the business and live off the proceeds. Whatever your desires, you need to develop an effective succession plan to make them a reality.
Keep or sell? An accountant specializing in business succession planning can help you investigate the pros and cons of both so that you can make an informed decision.
Who will mind the store? Company owners are not necessarily involved in the management of the business. It is possible to transfer the responsibilities of management to an outside party or to only one of your heirs. Once you make the decision, you will need to determine levels of authority.
Avoid the tax drain. The complexities of inheritance tax demand careful consideration by a seasoned professional to help minimize the tax assessment. Some options, such as trusts, require the services of both an accountant and an attorney.
Divide it fairly. Equal divisions are not necessarily fair divisions, especially when one party carries a significantly larger level of responsibility. An accountant can advise you as to how to compensate that party for carrying the added burden of management.
When you have made your decisions about each of these issues, an accounting firm can help you formalize your succession plan based on business valuation, business structure, tax options, and projections for your retirement. Contact us for a consultation to learn how we can help you preserve your business and pass the torch of leadership when the time is right for you.