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Succession Planning for Business Owners⎥ Tampa Bay, Florida

Adcock Financial Group

At Adcock Financial Group, our clients come first. As your fiduciary, we act on your behalf with a duty to preserve good faith and trust. We always put the needs of our clients ahead of our own. We strive to provide the highest level of service in every client interaction. We are passionate about client education, arming our clients with the tools they need to make informed decisions regarding their personal and business finances. Meet with one of our experienced financial services representatives to determine what we can do for you and your business.

What is Business Succession Planning?

Business succession planning involves creating a plan for someone to run or own your business after your retirement or in the event of your incapacitation or death. Essentially, succession planning is a plan to move through the process of passing control of the business to other(s). Sometimes referred to as business continuation planning, succession planning determines the business owner’s goals regarding the disposition of their business and its interests. When well structured, a continuation plan addresses contingencies that could potentially compromise the ongoing viability of an organization.

Why is it important to have a plan?

Business succession planning is an essential component of running and operating any business, especially for small business owners or owners who are nearing retirement. Planning ensures a smooth transition for the company and its associates and can mitigate any adverse effects when done ahead of time. Another reason succession planning is important is that many organizations suffer when an owner unexpectedly passes away suddenly or unexpectedly. Having a plan ahead of time creates an atmosphere of certainty and security that the business will continue to thrive if the unexpected occurs.

Five Major Objectives of Succession Planning

  • Ensure Business Runs as Usual – A retired business owner and/or their dependents may rely solely on the business’s success for their financial well-being. Therefore, ensuring that the company continues to run efficiently and effectively is a crucial Sound planning provides the needed tools and strategies to ensure that the business can continue to thrive in the event of an owner retiring or an owner’s sudden incapacitation or death.
  • Maximize Value – The ultimate objective of any succession plan is to increase profitability and create maximum value so that the retired owner and their dependents can rely upon the business for their financial welfare.
  • Minimize Taxes – Taxes can be a killer in the business world. Taking steps to minimize taxes now and in the future will ensure that your business profits are just that, profits. You have worked hard to develop your business and ensure profitability. You don’t want to pay out more of your hard-earned money in taxes than you need to.
  • Ensure a Smooth Transition – A smooth transition of ownership or control of an organization is vital to ensure its continued success. Many factors can affect the transitional stage of a business. It is essential to consider them ahead of time.
  • Determine Successors – Who will manage or take ownership of the business if the owner becomes incapacitated, passes away, or chooses to retire? It is essential to determine this in advance as often as possible. Whether you have children, you will groom to be your successors, a person within the organization, or otherwise, this is a critical component of successful succession planning. Making these individuals aware of the plan and preparing them will ensure the continued success of your business.

Components of a Sound Business Succession Plan

A sound business succession plan includes clearly defined goals. The more detailed and precise these goals are, the better. You will need a professional advisor in this process to assist in fact-finding, determining tax consequences, outlining strategies, and minimizing risk.

Key Takeaways

Your business must have a plan for the continuation of its success. Whatever the reason may be, there will eventually come a time when your business will need to transfer ownership or control. Whether it is because you are ready for retirement or otherwise, it is vital to have a plan ahead of time. Our financial professionals have the experience and skills needed to help you create a successful succession plan for your business. Don’t wait any longer. Schedule an appointment today.