Succession Planning for Business Owners

Succession Planning for Owners | Northeast Wealth Management

When entrepreneurs start a business, the last thing on their minds is succession planning. Most business owners spend a lot of time – as they should – on operations plans, marketing plans, capital spending plans, maintenance planning, staffing plans…and more. But what about succession planning? Wouldn’t you like an orderly “exit” from the business, once it’s time for you to take a back seat?

Why Business Succession Planning Is Important

You’ve built your business through sweat and tireless effort. For most entrepreneurs, their business operations represent a legacy that they’d like to leave to the next generation. What would happen to the business in the event that you are suddenly incapacitated – is there someone reliable that can step into your shoes? Have you thought about the customers and clients who depend on the goods and services your company provides? Who would service their needs if you were not around?

More importantly, given that many loyal employees count on working for the business long after the owner has passed, it makes sense to ensure someone with the proper vision for the business succeeds you.

Without a proper succession plan in place, family strife and internal (company) politics could threaten the future of the firm as a going concern. In some cases, companies without sound succession plans find themselves being pushed into bankruptcy or receivership.

There are far reaching repercussions for not having a well-thought-out succession plan. Unfortunately, all of them are unpleasant for the business, the business owner, his/her beneficiaries, and the employees working for the company.

What We Can Do for You

Simply put, our business succession planning service provides business owners with peace of mind – the kind that comes from knowing you are well-prepared to relinquish control of the business on your own terms. And we do that by ensuring that the stewardship of the business passes into hands that are designated and approved by you as the business owner.

But succession planning is not just about designating a particular individual or group to step in after you’re gone. Our business succession planning team lays out a comprehensive process for identifying, screening, grooming, and ultimately transitioning ownership to your designated successor/s when the time comes.

Here’s a preview of what our business succession planning service covers:

  • Strategizing succession: Helping you identify the ideal succession strategy based upon any number of “end game” objectives that you have in mind including maximize sales proceeds, minimize tax implications, create a lasting legacy, and assure a comfortable retirement.

  • Building succession plans: We’ll discuss at length with you about possible succession strategies: Does passing the business on to your next generation make the most sense? Will handing it over to designated and trusted employees better suit the legacy you desire? Have professional management teams from outside step in and take over? Sell the business to a competitor and pass the proceeds to your heirs? Go public, leaving it up to the Board of Directors to deal with the company’s future?

  • Understanding the impacts: Together, we will walk you through all of the legal, financial and tax implications for each of the various succession scenarios proposed. This impact analysis will help you determine which of the succession approaches makes best sense for you and the business.

  • Identifying successors: Depending upon which strategy you choose, we will work with you to identify a list of skills and qualities needed in your successor. This phase of our succession planning often results in recommendations for training or mentorship well in advance of your exiting the company.

  • Multi-disciplined advice: In the event that the plan involves selling all or part of the business, we will work with a team of advisors, including accountants, insurance agents, realtors, and estate planners to determine a fair and equitable valuation for the business.

  • Relationship-building: Finally, we’ll work with you to establish a comprehensive timeline for key milestones within the plan. And because our service is based on a long-term relationship, we continually monitor and consult with you as your succession objectives evolve or change.

Contact us today to learn more about succession planning as a business owner. 

If you have any questions, please do not hesitate to reach out to us at 781-356-2969 or click on the following link to schedule a meeting with us: