You worked hard to build your business, but what happens when you want to retire? Will you cash out to your partners, sell it to your employees or another firm? Will your children want to keep the company in the family and hold leadership positions? No matter what the answer is, Kagan & Kagan can help.
Fundamentally, a succession plan is all about preparing for eventual change. It should be developed well before any planned transition because the unexpected can happen. We can create a plan that will help protect stakeholders, assuage your lenders' and suppliers' fears, and help ensure the business remains viable. A succession plan is essential if you plan to step away or suddenly become unable to operate the business.
Our team can help you prepare for all eventualities. If you plan on selling in the future, we can work with you to increase your business's value and help identify the best time to sell. If you have partners, we can work out agreements to fairly value your shares so they can buy you or your family out. Suppose your intentions are for your family to take your place. In that case, we can help develop procedures to groom your replacement well ahead of time to ensure business continuity. Regardless of which path you choose, we can help build a strategy so the transfer taxes do not cripple the business.
Remember, a succession plan is not written in stone. What if your heirs decide they do not want to take a leadership role in the business, or a partner chooses to cash out? What if the government decides to change your tax situation? Circumstances can change drastically in a short amount of time, so the plan should be reviewed and revised frequently.