What a Succession Plan Can Do
Just what can a succession plan do for you?
At its most basic, a succession plan is a documented road map for your partners, heirs, and successors in the event of your death, disability, or retirement. It can also be used to orchestrate the sale of your business and may even help establish the value of your business. It may also help:
- Establish who would run the business if you retire or pass away.
- Set policies for distribution of business stock and other assets
- Set schedules for debt retirement
- Encourage key employees to remain on the job
- Protect the business should a partner decide to take his share and leave
- Help prevent family conflict from forcing the sale of the business
- Help your heirs pay estate taxes without sacrificing the business
- Provide a way to take advantage of unexpected expansion opportunities
In addition, having a sound succession plan may help you as you seek to secure your own retirement!