Business owners deal with a unique set of challenges. One of these challenges includes succession planning. A succession plan is the process of the transfer of ownership, management and interest of a business. When should a business owner have a succession plan? A succession plan is required through the survival, growth and maturity stage of a business. All business owners, partners and shareholders should have a plan in place during these business stages. We created this infographic checklist to be used as a guideline highlighting main points to be addressed when starting to succession plan.
There are 2 sets of events that can trigger a succession plan: controllable and uncontrollable.
Sale: Who do you sell the business to?
Retirement: When do you want to retire?
Divorce: A disgruntled spouse can obtain a significant interest in the business.
Illness/Disability: If you were disabled or critically ill, would your business survive?
Death: In the case of your premature death, what would happen to your business?
Execution: It’s good to go through this with but you need to get a succession plan done. Besides having a succession plan, make sure you have an estate plan and buy-sell/shareholders’ agreement. Because a succession plan is complex, we suggest that a business owner has a professional team to help. The team should include:
Contact us about helping you get your succession planning in order so you can gain peace of mind that your business is taken care of.
Horizon Financial Group