Business Planning

Business Planning - Key Questions:
  • How have you arranged for your family business to stay in the family?
  • When did you put your business succession plan on paper? When did you last review it and update it for structure and valuation purposes?
  • Is your succession plan funded for both death and disability?
  • What is your exit strategy for "monetizing" your business?
  • How protected is your business in the event you become seriously ill, severely injured, or die?
  • How much is your business worth? Have you insured the business at that value?

Financial planning for owners of closely held businesses involve:

  • Protecting the business owner (and owner's family) from owner's (and key employees') disability or death
  • Retention of key employees
  • Use of retirement plans (for tax advantaged savings and diversification)
  • Lifetime ownership and management transitioning (monetizing the business interest for the owner's retirement)

Choices of the proper business entity for the business owner involve issues such as:

  • Limited liability
  • Fringe benefits
  • Flexibility to expand (including going public)
  • State and federal tax planning (including AMT, capital gains and taxation at sale or liquidation)
  • Continuity of life
  • Centralized management and the ability to freely transfer ownership interests

The above list is not inclusive but includes many of the major reasons for business entity selection.

Cross-Purchase Agreement

Redemption Agreement

Hybrid Agreements - Wait and See Buy/Sell

Key Employee Death Protection

Key Employee Retention

Retirement Plans

Lifetime Exit Strategies for the Closely Held Business Owner