Business Succession Planning
One of the most important aspects of owning a family business or other small business is what will happen when you retire. Retirement is not simply a matter of deciding not to go into the office one day. What happens when you are no longer actively managing your business? Will you have enough money to retire?
The family dynamic complicates the whole transition because of the relationships and emotions involved. Most people are not comfortable discussing topics such as aging, death, and financial affairs with family members or close partners.
Thus, succession planning should be a priority for any family business considering that more than seven-out-of-ten family-owned businesses fail to survive the transition from founder to second generation owners. Typically, these businesses fail due to either the federal estate tax burden or litigation among family members--or both. So developing and implementing a well-designed succession plan is essential to the survival of a family business from one generation to the next.
CEO READY can assist clients with these key issues:
Keeping the business in the family. Whether you pass the business on to your family or sell it to a third-party, CEO READY will help you weigh the advantages and disadvantages of each of these options and make sure the necessary documents are assembled correctly.
The succession plan. Management and ownership are not one and the same. You may decide to transfer management of your business to just one of your children, but transfer equal shares of business ownership to all your children, whether they're actively involved in the business or not. CEO READY assists in developing and implementing the succession plan that achieves your goals and objectives.
Minimizing the tax consequences. The tax burden when transitioning a family business can be significant. The challenge is that a family business is not generally a liquid asset, but taxes are typically due when ownership is transferred. CEO READY helps you develop a succession plan that minimizes the tax burden for all generations.
Fairness. Transferring family ownership often adds a tremendous amount of stress to the familiarial environment. CEO READY consults with each family member to help ensure a smooth succession process.
What we can do for your family business...
Your CEO READY succession plan will likely focus on five main areas:
1. business valuation of the family business and business assets
2. business restructuring costs
3. tax consequences of any transactions
4. retirement planning
5. estate and gift tax planning
For more detailed information about how we can help with your business succession planning, please contact us.
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Practice Areas 
Business Planning Documents
Michigan Business Formation Documents