Business Succession Planning FAQ

General Questions


General Questions


Q: What is Business Succession Planning?

Essentially, business succession planning is the last will and testament for your business. It creates an orderly transfer of your ownership interest in your business and the necessary funding alternatives.
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Q: When should I enter into business succession planning?

Now. Not planning your own business' "ending" will create havoc for your successor and partners. Do you want to be in business with your partner or spouse? Instead force a judge to figure it out, after the fact. Just imagine the cost, the time, and the decisions that will be made at that time (not to mention the effect of strife on any ongoing business operations), versus doing it now.
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Q: How do I do it?

With a qualified attorney, and the use of buy-sell agreements, funding options, and other legal tools that allow a smooth transition.

Whether you own a business through sole proprietorship, partnership, corporation, or LLC we will determine the right mix and language used. Each business has its own unique set of circumstances that should be considered when planning for a business succession.

Contact us today for your estate planning consultation.
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Q: Who is involved with business succession planning?

You are, as well as key employees, partners, and your CPA accountant and/or sometimes even your competitors.
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Q: My competitors? Are you crazy?

No, we're not crazy. Who better to buy your business than someone who knows the business? Sometimes family members merely want to come cash out, a competitor is your most logical choice to buy out your internet. At that time, a funded buy-sell agreement would help pay your estate or your "uninterested" investors.
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Q: How much should I sell my business for?

That's a good question. There's price, and there is value. The price that a business is sold is a result of negotiations and "deal-making" between the buyer and seller, taking into account information, personalities, motives, and bargaining power.

The value of a business is hypothetical without a real buyer or seller. Like real estate, it's worth what someone will pay.

Contact us today for your estate planning consultation.
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Q: Then how do we determine the price?

There is no "Right" answer… judgment is a key element. Judgment can be formed by common sense, research on similar business transactions, and obtaining a business appraisal.
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Q: How do I pay for it?

There are a number of ways to find the purchase of the sellers interest. The buy-sell agreement will incorporate this info the plan. Some more common options are life insurance, creation of a sinking fund or establishing a long term payout.
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Q: What is the next step?

The next step is to contact us for a consultation.

Contact us today for your estate planning consultation.
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