Business Succession Planning

One of the first considerations every new business owner should consider is their exit strategy. As a business owner, you will have certain retirement objectives that are expected to be fulfilled, in part, through the sale of your business. The best way to achieve your financial goals is to monitor the continuing value of the firm and always run your business like it’s for sale.

This necessitates consideration of who might be interest in buying your business – a partner, a family member, a competitor, a private equity firm? So the natural starting point for business succession planning is choosing a successor.

Once a target is selected, we can help determine an optimal structure for your transfer arrangement. A business transfer can be structured as an independent transaction or wrapped up into the estate plan depending on the client’s objectives. Consideration must be given to the retirement objectives of the existing owners, the tax consequences to the buyers and sellers, and how the transaction will be funded.

We can help with your business succession planning in the following ways:

  • Determine the current and anticipated value of the business
  • Structure buy-sell agreements
  • Provide assistance funding buy-sell agreements through our sister company Podraza Insurance
  • Explain considerations in using Family Limited Partnerships (FLPs) as a transfer mechanism
  • Explore the benefits of utilize a stock redemption pre or post-mortem to transfer ownership interests
  • Explore options related to Employee Stock Ownership Plans (ESOPs)
  • Form transfer vehicles
  • Determine the tax optimized structure for conducting the transfer

Call us today to find out more about how we can help with your business succession planning.

It can take years to develop and implement business succession plans. It is never too early to begin exploring your exit strategy. Call Podraza CPA for expert advice on the most effective ways to maximize the after-tax value you receive for your business interest.