We assist our clients in developing a tax-favored strategy for the succession of their family business to the next generation, or their employees, or in the implementation of a plan to sell the business on the most favorable terms.
Succession planning often affords the owner the opportunity to receive a stream of income during their retirement years, and to retain some involvement in guiding the business, while at the same time assuring that the chosen successors will have a smooth transition to attaining control of the business.
Where there are multiple children, not all of whom will be involved in the future of the business, we assist the owner in developing techniques to treat all of the children equitably, if not equally. We can show how some children who have been active in the business can "buy" into the business by their effort and sweat equity over the years, while others can benefit through various techniques including, non-voting stock with dividends, assets leased back to the business, a spin off of other operating businesses, or a greater participation in the non business wealth of the founder.
Where the owner feels that none of the children would be the best buyer for the business, we often are asked to assist in developing methods for the employees to acquire the business on a basis that is favorable to them, the business, and the selling family. The terms of such a purchase agreement and how it is implemented can vary tremendously to achieve the most favorable tax and financial strategy for everyone.
When the owner feels that neither passing the business to family nor the employees would be the best succession plan, we help the owner in getting the family business ready to sell on the best terms to outside investors.
Our succession planning process begins by our listening to the owner to see who the owner believes can best run the business, whether family member or employees, and, if neither, what would be the appropriate time and process to sell the business. We are very familiar and experienced in the process of selling the business. Working with the owner to obtain the best price involves a team of experienced professionals which we can help assemble to develop the confidential information memorandum, to identify and attract buyers, and to negotiate the most favorable price, timing and other terms and conditions to produce the most advantageous tax favored situation for the sale. This may involve working with the distributors, bankers, accountants, key employees and family members while drawing on our business, tax and estate planning knowledge and experience. We welcome the opportunity to confer with you to see if you feel that we are best suited to lead your business succession team.