For the food processors, we work with the operation is more than a business. Yes, it’s the source of income and growing equity. It’s also a part of the owner’s family and a great source of pride. We often of an owner who will spend more time at work than with the family. As a labor of love and testament to realizing the American dream, owners want to see the business continue and acknowledge great pride in having one of their children carry the torch. But they know continuing success is difficult and very rare.
Most successful operations end up as a subsidiary in a larger conglomerate. Those that don’t measure-up, may transition into a temporary holding pattern, which usually falter after a time due to insufficient capitalization, incompatible estate plan, or unprepared next-generation. Most owners know planning for succession is difficult. The process involves tax, legal, and financial disciplines. It demands the services of a practitioner who understands business and can bring the disciplines together.
The planning process can be confusing. It can quickly overwhelm even the sharpest owner. Most owners know what they don’t know and appreciate a trained professional who will step in and manage the process in an orderly fashion.
Legacy’s food processing clients want solutions for:
- Converting business equity to an asset[s] that can be used to support the owner in retirement.
- Transferring ownership in the business to a well-prepared next generation.
- Treating the owner’s children equitably and apportioning assets among those active in the business and those who are not.
- Utilizing estate planning techniques to transfer business interests, minimize estate taxes, and support for a surviving spouse.
- Establishing a management structure that allows active owners to make the decisions necessary to succeed after the transition.
1. Financial Security
Providing financial security begins with a solid financial plan, which includes managing risks, eliminating personal debt, and establishing an investment portfolio. The entire process is designed to gain peace of mind and maintain the lifestyle an owner desires.
3. Leadership Structure
Succession depends on a management structure that allows those active and involved in the operation to control their own destiny. This phase is designed to establish a leadership structure that ensures management decisions are made by and for active and involved owners.
4. Estate Plan
Estate planning strategies are complex and confusing. They involve legal terms, financial concepts, and tax terminology. This step in the process will provide equitable distributions for their children and financial security for their loved ones. Estate tax provisions will ensure an owner’s wishes are achieved.
So, contact Kevin today for a consultation, we’ll address your questions, eliminate the confusion, and set your mind at ease.
10-Step Succession Planning Checklist for Business Owners
Our Spokane succession planning checklist addresses the goals of the business owner and the family. Take 10-Steps toward a more secure future