Explanation of the Process

Business succession planning is not an event, but a process that involves many considerations and a long-term vision. The process is not "quick, dirty, and cheap," but takes time to accomplish. Fees incurred in such a process should not be "costs" to the family, but an investment that produces a measurable return. Until fully implemented it requires periodic review and updating to take into consideration life events and changes in the business climate.

Business succession planning involves identification of the various business interests owned, identification and development of successors, developing strategies for transferring ownership and management control, identifying owners' family value and financial objectives, developing estate planning strategies for the owners, retaining key employees, and planning for future success of the business.

Typically, there are barriers to success in these engagements. The owner-entrepreneur frequently is reluctant to let go. Frequently there are conflicts in the objectives between the family and the business itself, and among members of the family. Emotions run high and can be gut wrenching.

Knowing the various aspects of business succession planning, recognizing the issues to be considered, and having experience in dealing with them are important credentials for an advisor. We have those credentials.

©2008 Ronnie C. McClure, PhD, CPA