If you own a family business, retirement isn't simply a matter of deciding not to go into the office anymore. You've got some critical questions to answer like...
"What happens to the business when you're no longer running it?" and
"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.
Comfortable or not, 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, typically falling prey either to estate taxes or family discord - or both.
Developing and implementing a well-designed succession plan is essential to the survival of a family business from one generation to the next.
We can discuss these key issues with you -
- Selling? Are you going to pass the business on to your family or sell it to a third party? We can help you weigh the advantages and disadvantages of each of these options.
- Who's going to run the business when you're gone? Management and ownership are not one and the same.
- Minimizing the tax bite. The tax burden when transitioning a business can be significant. We can review different sale structures from a tax perspective to aid you in making your decision .
We can review with you...
- Tax Consequences
- Retirement Projections
- Tax Projections