Family Business Succession
Making Sure Your Family Business Lives On
Ensuring the succession of a family business is easier said than done. It is estimated that at any time, up to 40 percent of family businesses are in the process of transferring their ownership. Sadly, it is estimated that two thirds of these attempted transfers will fail. Of the third that succeed, only half will remain after a second transfer.
Why such a high failure rate?
Many family business transfers fail due to people, taxes and cash. Panitz & Kossoff, LLP, can help ensure that it goes right.
Determine The Appropriate Leaders
Not everyone is fit to lead a business. The retirement, disability or death of a business owner can leave the wrong people in charge if a succession plan is not in place to ensure a smooth business transfer. It is important to take a good, hard look at your operation and your loved ones to determine if the next generation is up to the job. If not, it will be important to create a plan for finding the right fit outside of your family to ensure your business continues to thrive.
The team at Panitz & Kossoff, LLP, will create a business succession plan which incorporates the family element, mitigates federal estate tax issues, and coordinates financial and estate plans in order to fund your objectives. Our team at Panitz & Kossoff, LLP can help you with all your estate planning needs, including creating a business succession plan that incorporates the family element, mitigates federal estate tax issues, and coordinates financial and estate plans to fund your objectives.
Business Buy-Sell Agreements (BSA)
A BSA contract can provide for the transfer of a business upon the occurrence of a triggering event involving the business owner, such as their retirement, disability or death. A BSA can be drafted to ensure for the smooth transfer of entities including corporations, partnerships and limited liability companies (LLC). BSAs are binding on third parties such as estate administrators and heirs, eliminating the potential for estate-related delays.
Call Today to Learn More
Our firm will advise you concerning the type of BSA which will work best for the client’s specific circumstances and the various options for funding the purchase obligation under the BSA.