Business Succession Planning

Plan the future of your family business with smooth transition strategies

Why Business Succession Planning Matters

If you own a business, whether it's a family farm, small company, or professional practice, planning for its future is one of the most important—and often overlooked—aspects of estate planning. Without a clear succession plan, your business, your family, and your employees face uncertainty.

Business succession planning ensures your business continues smoothly when you retire, become incapacitated, or pass away. It addresses who will own the business, who will run it, how the transition will be funded, and how to minimize tax consequences while maximizing value for you and your family.

Key Components of Business Succession Planning

Buy-Sell Agreements

A buy-sell agreement is a legally binding contract that controls when owners can sell their interest, who can buy it, and at what price. This is essential for businesses with multiple owners.

  • • Prevents unwanted third parties from becoming owners
  • • Establishes fair valuation methods
  • • Provides liquidity for departing owners or their estates
  • • Can be funded with life insurance
  • • Avoids disputes among family members or business partners

Family Business Transitions

Passing a business to the next generation requires careful planning to address family dynamics, management succession, and fair treatment of children involved and not involved in the business.

  • • Identify and train successors
  • • Gradually transition ownership and control
  • • Equalize inheritance for non-business children
  • • Minimize gift and estate taxes
  • • Protect business from creditors and divorces

Key Person Planning

If your business depends on specific individuals (including you), planning for their sudden absence is critical to business continuity.

  • • Key person life insurance
  • • Cross-training and succession depth
  • • Emergency operating procedures
  • • Disability and incapacity planning

Business Entity Selection

The structure of your business (sole proprietorship, LLC, S-Corp, C-Corp, partnership) significantly impacts succession planning, taxes, and asset protection. We help ensure your entity structure supports your succession goals.

Common Business Succession Scenarios

Family Farm Succession

Transfer farmland and operations to the next generation while addressing tax implications, non-farming children's inheritance, and creditor protection.

Sale to Co-Owners

Structure buyout by remaining partners or shareholders upon retirement, death, or disability, often funded with insurance.

Sale to Key Employees

Transfer business to trusted employees through installment sales, ESOPs, or other structured arrangements when family succession isn't an option.

Third-Party Sale

Prepare business for maximum value in a future sale to outside buyers while minimizing tax consequences.

Critical Questions We Address

✓ Who will own the business after you retire or pass away?
✓ Who will manage day-to-day operations?
✓ How will the transition be funded?
✓ How do you treat children fairly when some are involved in the business and others aren't?
✓ What happens if you become incapacitated before retirement?
✓ How do you minimize estate and income taxes on the transfer?
✓ How do you protect the business from future creditors or divorces of heirs?
✓ What is the business worth, and how should it be valued?

Secure Your Business's Future

Schedule a consultation to discuss succession planning for your business.

Schedule Consultation