Whatever is decided, the management team needs to be part of the conversation and comfortable with the decision.
“Succession planning shouldn’t start at death or disability.
That’s too late.” spoke with Karas about the many considerations business owners should make when determining their estate plan.
“Regardless of whether the owner decides to maintain the business or sell it and divide the profits, the time to consider and lay plans is early on,” says Kimon P.
Karas, a shareholder at Mc Carthy, Lebit, Crystal & Liffman Co., LPA.
There is a lot to think about when business owners begin estate planning.
As they think through what to do with what is often the most valuable asset in their estate, they’ll need to determine whether the company will be passed on or sold.
Taking steps to protect that asset now is one of the smartest things you can do as a business owner. Estate planning is one of those things everyone dreads and tries to avoid, but without it, your business could suffer, or even fail, if something were to happen to you unexpectedly.
For that reason, it's never too early to start thinking about estate planning.
Assuming that the owner wants to perpetuate the business within the family, he or she needs to determine how engaged the family is in the business and if they are able to manage and operate it.
It’s important to have a plan for the division of roles.