Business Owner Succession
Business owner succession services comprise a comprehensive approach to business transition that can help you navigate through your business and personal financial life cycles.
Our team includes professionals trained in diverse disciplines to help you manage each step of the succession process and steer a path that leads to your strategic goals. Some of the questions you may address are:
- Have you identified the critical management succession issues?
- How will the transaction contribute to your personal financial goals and affect your lifestyle?
- How does this transition affect your estate-planning objectives?
- Does the business strategy and the plan drive value or personal income?
- What will be the effect on the business before and after the transaction?
- What are the emotional and human issues that must be considered?
In a natural business cycle, a company progresses from launch as a start-up to growth to plateauing as a mature, established company. At each stage the owner faces different challenges and planning needs.
Regardless as to where you are in the business cycle, changes in one area can have dramatic and immediate “waterfall” effects on other areas. Our approach allows you to understand and plan for these effects.
- Strategic planning
- Balance sheet, profitability and operating performance assessment
- Budgeting and forecasting
- Asset financing issues
Personal Financing Planning
- Cash-flow needs analysis
- Retirement planning
- Personal income tax planning
- Income tax planning
- Personal wealth planning
Management Succession Planning
- Management skills assessment
- Organizational development and training
- Professional search and recruiting
- Organization charting and position descriptions
Ownership Transition Planning
- Business valuations
- Acquisition positioning plans
- Strategic research
- Tax planning
- Gift planning and consulting
- Documentation review and analysis
Business Succession Action Plan
- Assess your needs and options
- Develop timeline and define transition
- Review and analyze your personal and business financial plan
- Identify and plan for your family management succession issues
- Identify and review your owner succession exit strategies
- Review your estate tax plan
- Address issues related to your succession plan
- Implement action plan
Keeping the Farm in the Family
Agribusinesses face unique challenges and opportunities when it comes to ownership transition and estate planning. Long before one farm family faced retirement, the owners decided to pass their farming corporation intact to future generations of the family.
Working with current and second- generation family members, BKD developed a plan to keep the farm in the family. We did so by:
- Converting from a C corporation to an S corporation to provide cash flow to the shareholders
- Structuring a significant tax-free exchange of low-income producing assets to more productive assets
- Issuing nonvoting common stock to the current stockholders
- Gifting voting stock to future management and nonvoting stock to others
- Forming a life insurance trust and purchasing life insurance for estate tax-free cash at death of current generation
- Providing for a desired income stream to the current and second-generation stockholders
- Reducing estate taxes at the current owners’ deaths
The result: a plan that gives both generations the assurance that their goals and objectives have been met