When running a family business retirement is not a basic question of deciding when to no longer show up to the office anymore. Actually you have to answer harder questions such as who will run the business when you are no longer there or even if you have enough money to retire.
The family part of family business poses several other harder choices when planning to retire, as no matter how hard you try someone is bound to get hurt. Because of this a whopping 70% of family businesses do not survive the transition from generation to generation.
So how do you protect your family business from this disturbing statistic? Only a well planned succession plan can protect the survival of the family business.
We can help you with these key points:
- Keeping it within the family: Will essentially keep the business within the family or turn it over to a third party. We will show you the pros and cons of both sides
- Who will run the business when you are gone: The decision of who will run the business when you officially step back must be a choice that is best for business. You must remember managing and ownership are two different things. While you give one of your children management of the business you can divide ownership equally amongst the siblings.
- Minimizing Transitioning Taxes: When transferring ownership of the business there can be a significant tax burden. The challenge lies in that the business is not a liquid asset as a whole, we will help you lessen the burden where you can.
- Keeping it Fair to Everyone: We will help you see all the possibilities to keep every family member involved happy and make the transition as easy as possible.
After we fully understand what is possible for these key points our team will work with you to construct your succession plan focusing on these five points:
- Business Valuation
- Business Restructuring
- Tax Consequences
- Retirement Projections
- Tax Projections
For a free consultation on your Succession planning, click the button below.