Start with a Business Succession Strategy
When is the best time to start creating your business succession plan? Now. Beginning the business succession process as soon as possible allows everyone involved to provide input into the succession planning process.
Life can be uncertain. You may be planning to exit the business at retirement, but what happens if the business needs to be transferred sooner because of illness, disability or death? What if one of those circumstances occurs and your business equity is insufficient to fund your retirement or provide for your needs?
Business owners like you know strategy isn't developed overnight; it can take weeks, months or even years to finalize a business succession plan. That's why initiating the business succession planning process now can help give you peace of mind. Knowing you have a business succession plan in place that will keep your business alive in the future lets you focus on running your operation today.
Whether you're the one passing your business legacy to the next generation or the new owner preparing to accept the responsibility of owning the business, business succession plans work best when all parties are involved in the business succession planning process.
Business Succession Considerations
Every business succession scenario is unique. Your business transition team of advisers can help you bring all the elements of your business succession strategy together. Common business succession plan elements may include:
- An evaluation of your business, including its value and liabilities
- A description of the goals and objectives for the future of the business
- Determination of your business successor
- A buy-sell agreement or other transition document or agreement
- Your retirement plan
- Life insurance and long-term care coverage
- Completed and updated estate preservation documents, such as a will, trust and powers of attorney
- A timetable for implementation of the transition
- Contingency plans
As you plan, Farm Bureau Financial Services can help you understand your business succession options. Find an agent now.