Succession, Exit & ESOP Programs
SUCCESSION PLANNING is setting a business atmosphere that allows you to leave the business either full time or part time. Have you developed a team that can run the business in your absence? Do you have a good first and second string? Are your children involved in the business – what positions would they hold? Is there going to be conflict? How would your absence affect your customers? Succession Planning begins long before you plan to hand over responsibilities to others. It should be part of your overall business plan from the beginning of your business.
EXIT PLANNING is similar to succession planning but it is selling your business. How well have you prepared to sell? It can’t be a last minute idea and has to be prepared years in advance to maximize your business value. Are you managing your income statement and have you revised your business plan? Have you filled the gaps in management? Have you added outside directors? These are only a few of the questions you have to answer and things you have to do.
ESOP’S – Employee Stock Ownership Plans may be an option for you to sell your business. In essence you sell your business either part or total to your employees. There may be significant cash flow, tax and
productivity benefits in such a plan. An ESOP is an ERISA defined contribution plan that uses your company stock for funding and at the same time buys out the owner. There are many facets to this type of plan. We would be happy to discuss its benefits with you.