More often than not, many successful entrepreneurs’ family wealth is tied to their family business. The entrepreneurs are concerned about business succession as they get older. Ideally, they often want to pass on the family business to the next generation. However, they may need to consider other options including selling the family business to a right employee or an outside investor in order to cash in and maximize the value of the family business.

Succession planning is a long-term process. Whichever path they choose, they have a lot to consider and may feel overwhelmed. We are experienced in business succession planning which we break it down in three phases:

Design: Generally, we take the following approach to develop a business success plan which may involve an estate freeze, the use of a family trust, a life insurance program, or a non-resident tax strategy where appropriate:

  • Review the personal objectives of the owner, the circumstances surrounding the company and the family;
  • Estimate the company’s worth and, where required, prepare a valuation of the business;
  • Determine whether there is a need for insurance and the type of insurance;
  • Develop a strategy to either transfer the family business to the next generation or to sell the family business;
  • Evaluate the tax consequences involved in passing or selling the family business.

Implementation: We coordinate with the client’s legal counsel to implement the business succession plan, including:

  • Review of any required legal documents prepared by the legal counsel; and
  • Assist in any tax filings that may be required to implement the business succession plan.

Annual Review and Update: We monitor the business succession plan year by year and adjust it for changing tax laws, the owner’s changing circumstances and personal objectives.

Contact us or book an appointment to find out how we can help you. We are also accessible via our E-Service.

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