Business Succession Planning
Business succession planning is an oft neglected but extremely important aspect of estate planning. A business that is not properly structured for transition to family members or successors risks going through the probate process and getting locked up for 12 to 18 months – enough time to completely destroy the business. Fortunately, with some planning and effort, family businesses can successfully pass to the next generation or ramp up to increase value for sale.
Business Succession Planning may include:
- Setting up business entities such as LLCs or S Corps.
- Reviewing and revising current operating agreements.
- Moving assets (such as real estate) into entities.
- Risk assessment and mitigation.
- Business process mapping.
- Engaging fractional CFOs, accountants, financial advisors, insurance providers, and business advisors to help resolve risk factors and increase valuations for sale.