Secrets of family business succession planning
According to Small Business Administration 2011, family businesses comprise 90 percent of all business enterprises in North America and 64 percent of the total U.S. employment. Even so, only 30 percent of family businesses in the U.S. will pass to next-generation family members. In fact, peakfamilybusiness.com revealed that 47 percent of the companies they surveyed in 2011 had no succession plan in place—leaving the company exposed in the event of the business owner’s death. Another startling fact is that of the CEOs due to retire in 5 years, 55 percent have not yet chosen their replacement.
Now that you know all these important facts and figures, what do you do with them? The answer is clear—ensure that your organization has a comprehensive succession plan in place before you need it.
When you work with Meaden & Moore to execute a business succession plan, we’ll carefully consider your organization in terms of:
- Family harmony
- Ownership succession – family, non-family employees, non-employees, the importance of shareholders’ agreements, family council, and unrelated parties
- Management succession – the current owner/operator, family members, key employees
- Cash flow and financial planning for the owner
- Careful consideration of the tax issues
Once we gather all the necessary information, the Meaden & Moore team will follow a process-oriented approach to creating a business succession plan custom-tailored to your organization. During the process, we will:
- Engage the appropriate professional advisors
- Identify the business owner’s goals
- Identify the stakeholders and their goals
- Identify the overarching business goals and needs
- Thoroughly explore your business transition options
- Develop your succession plan
- Implement the plan
- Monitor the plan
In short, you can count on Meaden & Moore to not only create your business succession plan now, but ensure it is carried out, according to your specifications.
Transitioning your business
While many business succession plans designate family members as the new owners, some organizations transition their companies to their employees. Meaden & Moore can help you create a succession plan that enables your employees to not only continue working at your company after your retirement or death, but to own and operate the company, as well. Depending on your wishes, we can develop a plan that includes outright sale of your company to your employees or an employee stock ownership plan (ESOP).
Meaden & Moore can also help you transition your business to unrelated parties, click here for more details.
Securities offered through 1st Global Capital Corp., Member FINRA, SIPC. Investment Management Solutions (“IMS”) Platform fee-based asset management accounts offered through 1st Global Advisors, Inc. All other financial planning services offered through The Wealth Center at Meaden & Moore. The Wealth Center at Meaden & Moore and 1st Global Capital Corp. are unaffiliated entities. Insurance services offered through 1st Global Insurance Services, Inc.
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