Succession planning needs?

Been in business with a partner and now looking to exit? We help you implement a plan to control what happens with your business. Having a detailed plan in place that provides clear steps to take when a crisis occurs can ensure your business survives. We help evaluate the risks specific to your business, and draft a plan that fits your needs "no matter what."

 What is Exit Planning? 

the strategic process of preparing a business owner’s departure from their company while maximizing value and ensuring business continuity.

Key Objectives:

•Maximize business value

•Minimize tax liability

•Ensure smooth transition

•Protect stakeholders

•Achieve personal financial goals

Why Exit Planning Matters

Most business owners spend decades building their business. 50-70% of net worth is often tied to the business, yet only 20-30% of businesses successfully transition.

Common Pitfalls Without Planning:

•Forced sales at unfavorable terms

•Significant tax burdens

•Family conflicts

•Loss of business value

Unprepared successors

When to Start Exit Planning -  It's never too early to plan 

Ideal Timeline:

•General businesses: 3-5 years before intended exit

•California professional corporations: 5-7 years before intended exit

Trigger Events:

Some trigger events include: business maturity, owner approaching retirement age, health concerns, market opportunities, or a change in personal priorities.

Common Exit Strategies

•Sale to Third Party

•Strategic buyer

•Financial buyer (private equity)

•Competitor acquisition

•Management Buyout (MBO)

•Sale to existing management team

•Family Succession

•Transfer to next generation

•Employee Stock Ownership Plan (ESOP)

•Sell to employees over time

•Merger

•Combine with another entity

•Liquidation

•Wind down and sell assets

How business succession planning helps the long-term survival of a small business

As Winston Churchill famously said, “He who fails to plan is planning to fail.”  The statement is particularly relevant when considering why so many businesses fail to survive following the death, disability or retirement of a company founder or owner.

For family owned businesses, 79% of small business owners say that they want to retain their business within the family; 70% of second generation family members share the hope of retaining the business within the family.  Yet only 30% of family-owned businesses survive into the second generation. Some 12% are still viable in the third generation, and only about 3% operate into the fourth generation or beyond. 

The lack of a clear, formal and well-defined business succession plan is most often cited as the primary reason a majority of small businesses don’t survive the death or disability of the founder.  Helping owners understand what they can do proactively to overcome those odds is one of my great passions as a business attorney. 

If your business currently lacks a customized succession plan, please contact me to learn why they are so critical to the long-term survival of your small business.