Episode 19 – Business Succession Planning focuses on one of the most important part of protecting an owner, member, partner, shareholder or investor in any company, and yet less than one in four businesses have a succession plan. In this insightful episode Jan establishes the purpose of a business plan: “how it is that you wish to transfer the operations of whatever you’re doing in the event of death or disability so that the company can continue and customers can be served, or you close the company and it ceases to exist.
In Episode 19 – Business Succession Planning Jan discusses the “reasons” business owners and stakeholders have for putting off this important process, while providing real life examples of what has happened to two example clients who failed to establish succession planning prior to the passing of the primary owner or key executive. The ultimate goal of business succession planning is “the assurance of continued operations in a smooth and efficient manner so that it doesn’t impact employees, it doesn’t impact clients, and it doesn’t impact adversely the individuals that are left behind to, to take care of what whatever it is that’s happened. “
Episode 19 – Business Succession Planning covers the broad perspective of this important business planning tool. The end of the episode is powerful: “at the very beginning when one lines out how it is that a business succession will occur in the event of death, divorce, disability in the bylaws or the operating agreement or subsequent to the organization in the completion of a business succession planning, the ability to put together the plan in place as to how the business transfer or the effective ownership transfer will occur, whether it’s a sale, whether it’s insurance, whatever that financial means is gives you the opportunity to plan the impact of the taxes that will occur based on that transfer. To the extent that you leave it and you don’t plan for the effective transfer, whether it’s sale, whether it’s insurance, whatever formula that’s been created just leads to chaos.
We’re talking about preserving and making sure of the longevity of and the succession of all you’ve spent your time and energy, hard work and money to build, and for those that are around you and your family and those that are coming behind you. That’s the whole purpose of planning. Planning is always the vehicle to go back and ameliorate the what ifs.”
Life’s “What If’s!”
Is your business prepared to weather the storm of life’s “What If’s?”
The integration of Allen Barron’s legal, tax, accounting, estate planning and business advisory services allow our clients to gain a more comprehensive understanding of the whole picture as well as the sum of it’s parts and structure one’s affairs to protect important business assets and minimize taxation while preserving all you have worked so hard to build.
Listen to ABCast Episode 19 – Business Succession Planning and we hope you enjoy learning more about the important issues associated with real life issues regarding business succession planning. We invite you to meet with Janathan Allen and the experienced team at Allen Barron by contacting Allen Barron, or call 866-631-3470 to schedule a free consultation.
Read a Transcript of Episode 19 – Business Succession Planning
