Auto Update: Business Succession PlanningEvery business, whether large or small, new or old, should consider a business succession plan. No business owner creates and develops a business with the intent that the business will just stop upon the owner's retirement or death. Business owners usually want to leave the business to their family members or key employees after they are gone. To make sure your business is left to the right person or persons and/or to maximize the business' value should you decide to sell all or part of it, you need a business succession plan.
What is a Business Succession Plan?
A business succession plan is a comprehensive strategic approach to transition your business ownership. It will:
- have to be coordinated with the business owner's estate plan
- be unique to each business owner "one size does not fit all"
- need to be updated periodically
- help the business owner and his/her family when preparing for retirement, illness or death of the business owner.
- help in the transition of the ownership of the business to a third party, family members, or employees
- help minimize the tax burden to the business owner on the transfer