Business Succession Planning

Business Exit Planning


Questions to Consider.

Whether your business will be among the going concerns for years to come depends, 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?
  • To fund a buy-out, where will the money come from?
  • Will the buyer be able to guarantee full payment?

If you already have 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 that will not succeed you as owner.
  • Drawn up and funded a formal buy-sell agreement.

Executive Benefits Planning

Once your business succession plan is in place, it's time to turn your attention to employee benefits. After all, your company is successful because of the employees you have hired and kept. You have come to depend on them, and they, in turn, depend on you. Yet traditional benefits may not be enough to retain your key employees.

We can show you how executive benefit plans allows you to reward superior performance, provide extra incentive, and attract and retain key people. In fact, you can establish a plan that provides benefits to one or more key persons, or a select group of management executives, with different plans for different individuals.

Succession Planning Strategies.

Business succession planning is not a static event, but rather an ongoing process that, can provide you with the ability to accomplish identified goals. At The Construction Group, we are specialists in business succession planning strategies, including buy-sell agreements (such as stock redemption and cross-purchase agreements), the use of life insurance, grantor-restrained annuity trusts, and family limited partnerships. We can work with you to help develop strategies that maximize control if you wish, while still allowing the business to smoothly transition whenever you choose.

The objective of transferring a business in the most tax-advantageous way is often the primary reason to plan, but other issues exist which are equally as important. Spousal support, equalization among children, early inheritance, guardianship and asset management are all examples of benefits addressed as part of an overall plan.