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Given that your succession plan should be built around the unique characteristics of both your family and your business, every succession plan will be different. However, there are several common elements to most successful plans, including those listed here.
- Statement of distribution of ownership: how much to sell and when
- Identity of successor and how they are to be trained
- Business maximization strategies
- Roles of key players during transition
- Business valuation and mechanics of purchase or sale
- Financing
- Taxation and legal considerations
- Retirement and estate considerations
- Monitoring process and procedures for dealing with disputes
- Timetable
- Contingency considerations
Since a variety of expertise is required, it is important that you work with an appropriate team of experts to help you develop your business succession plan. This team should include tax, legal, insurance and investment representatives.
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