Business Succession Planning

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“Success(ion) Planning” is “Planning for Success”. If you as a business owner left work today and for whatever reason (death, disability or retirement) never returned to your company, would your company not only survive your departure but also thrive after you were gone?

Does everyone know who would be in charge and who would control the company?  Has a leader been selected and trained?  Someone everyone knows and accepts?  Who would manage the company?  Who would own the company?

What we are talking about is Business Succession Planning.  It’s a part of your Strategic Business Plan.  It is a plan for how your business survives its separation from the founder or current owners—whether because of death, disability or retirement.  It involves planning for the continuation of your business after you leave.

Your company has a Succession Plan—whether you realize it or not.  For example, in the event of your death, who would own the company?  Who would be in charge and have control of the company?

What does your will say?  Is it your spouse, or bank, or other trustee of your Family Trust under your will?  Is that who you want to run your company?

For over 30 years, our firm has focused heavily on helping business owners create a unique Succession Plan for their business which meets their objectives.   Three things have to be planned for:

1. The transfer of ownership of your business;
2. The transfer of management and control of your business; and
3. The particular terms and conditions of your exit from the business.

Succession Planning is a process that all closely held business owners will ultimately have to deal with.  It is also one of the greatest unmet needs of closely held business owners.

Why is that?  According to a U.S. Trust survey only 1/3 of the “most successful” closely held businesses have Succession Plans which address all of the issues set forth above.

Over the years, our firm has developed a specific process for helping business owners create the optimum Succession Plan for their business which best meets the business and personal objectives of current and future owners and also leads to maximizing the value of their business.

With an effective Business Succession Plan, which includes a management team well trained to take over from the current owner, the value of the business is maximized due to the fact that the business will continue to survive and thrive after the current owner’s departure.  The business will be attractive to both “strategic” and “financial” buyers in the event that a decision is made to sell the business.

The “Succession Planning Process” is part of our “Exit Planning Process” for business owners. Our Firm has assisted numerous businesses of all types and sizes in the creation and implementation of a unique Succession Plan which best meets all of the stakeholders’ (current owners, future owners, family, etc.) interests and objectives.

We are proud to have participated in the creation and implementation of Succession Plans for many of the larger family and closely held businesses in the Carolinas.