Be clear about your financial and personal goals for retirement. Your support team can help you articulate your goals and overcome the psychological barriers involved in publicly discussing personal matters. Once key employees and family members understand your intentions, they are more likely to support your plan.
Design, develop and monitor the plan
Once you have considered all your alternatives, put your succession plan in writing. At this stage, you will either identify a successor or begin to maximize the value of your business for a sale.
A good succession plan must be flexible – considering alternatives will allow you to respond with confidence if reality throws a wrench into the works. Regular meetings with your advisory team will ensure that your plan remains current and will facilitate regular communication between key stakeholders.
In summary, a carefully prepared succession plan is the key to a successful business transition. To be effective, the plan must consider all details, from choosing a successor to tax and estate planning, to managing the legal ramifications.
Although the prospect of passing the torch to a successor may appear daunting, starting early with the right support team will make all the difference.
Bill Rucci is a partner in the Boston area accounting and business advisory firm Rucci, Bardaro & Falzone PC, where he heads the firm’s Construction Business Services Group. He can be reached at (781) 321-6065 or email@example.com.
Harris Kligman is the tax partner with Toronto-based Kestenberg Rabinowicz Partners LLP. He is co-chair with Mr. Rucci of Russell Bedford International’s North American Tax Services Group. He can be reached at firstname.lastname@example.org.