Hoping to retire as the owner and manager of a family-owned business? Ready to turn over the reins to a successor, but not sure where to begin? Here are a few simple suggestions to help you in the process:
Bring in Professional Advisors (tax professional and attorney). An accountant will advise you on potential tax implications you might face if you sell or gift a portion of your business. An experienced attorney can assist with the preparation of all necessary legal documents for your business succession. Typically, the most advantageous plans are those that are implemented with the assistance of both your attorney and your tax advisor. Aside from the obvious professional experiences they bring to the table, your attorney and accountant can provide an objective, neutral viewpoint during what is often a very emotional time.
Choosing a Successor. If you have someone in mind to succeed you, make sure to provide them with ample opportunities for training, internships, and work experience. Assessing your successor candidate’s drive and passion during this time will be important to the future success of your business. Some candidate screening topics you might consider are:
Bridging the gap between generations. Incorporation of new ideas from young leadership will be critical to moving your business successfully forward after your retirement. To foster a smooth transition from the “old guard” to new leaders, you might consider:
If you have questions about business succession planning, contact Davis & McCann, P.A., Dodge City, Kansas at 620-225-1674. We are members of Wealth Counsel, a national consortium of Estate Planning Attorneys and the National Academy of Elder Law Attorneys (NAELA). We focus our practice on providing clients with the best legal advice on Estate Planning, Medicaid and Long-term Care Planning, Special Needs Planning, Family Business/Small Business Succession Planning, Probate, Trust Administration, Real Estate, 1031 Exchanges, and related matters.
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