Business Continuation Planning

Date Posted: 7/30/2013
Author: Mel Bannon
Everyone who owns a business must face the inevitability of business succession yet 19% of family business owners have not completed any estate planning other than writing a will. Perhaps that’s why roughly 30% of all family owned businesses survive into the second generation, 12% are viable only into the third generation, and a mere 3% operate at fourth-generation level and beyond!

Business succession planning is not a static event, but rather an ongoing process that, over time, can provide you with the ability to accomplish identified goals.

Whether your business will be among the going concerns for years to come depends, in part, on your written succession plan. If you haven’t formalized your plans yet, here are some questions to consider:

Who will take over your business when you retire, become disabled, or unexpectedly die?
Is this person properly equipped and experienced to do the job?
Will your customers, employees and family members support this person?
Will it be possible for your family to sell the business - for fair value - if necessary?
Where will the buyer be able to guarantee full payment?
If you have already begun succession planning, make sure you have:
Identified a successor with the requisite skills, knowledge and experience.
Communicated the plan to all relevant parties.
Made arrangements for how to deal with key employees and/or family members involved in the business who will not succeed you as owner.
Drawn up and funded a formal buy-sell agreement.
It has been said that the difference in having the planning done and having it done as well as it can be done, often results in millions of dollars being squandered or saved. If you would like to learn more about these new services, please contact your Account Executive to arrange for a complimentary & confidential discussion and review of your current planning.