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Business Legacy Planning

Many owners of privately held businesses are very concerned about the next generation of owners and what their legacy will be as it relates to the business they created or fostered. We also find that many owners are concerned about a fair distribution of the business ownership among the next generation.

Business legacy planning helps you answer the questions you might have about the “who and how” of the next generation. Business legacy planning concerns itself with some of the following questions:

If you’re going to sell your business to a third party, how will you know if they will be good stewards of the stakeholders of your business?
If they are your managers, how do you know that the managers can run the business? How do you know they will treat your other employees fairly? And, in many instances, how do you know they will pay you the money they owe you for purchasing your business?
If the next owners will be your children, many of the questions are similar to those you would ask your managers. Often, owners are interested in knowing how to be fair in passing the business on to more than one child, when one works in the business and the other does not.

All of these questions are part of building a legacy for the departing owner. The primary question we want to answer is, how can your business transfer make your life better? The “who, what and why” of passing a business is the first place we suggest you start as you think about the next owners.

Some of the processes we use in Business Legacy Planning are:

Understanding the legacy you will be passing on.
Ensuring you are paid a fair price for your business.
Making certain your business can withstand the pressure of moving from you to the next generation.
Developing best practices for passing a business to family members.
Developing best practices for passing a business to managers.
Preparing your business for transition.
Understanding the due diligence process and what to expect.
Making your business attractive to a third-party buyer.
Ensuring the legacy you want is the legacy you get.
Preparing you for what’s next after you leave your business.

DISCLOSURE: Securities and Investment Advisory Services offered through NFP Securities, Inc. (NFPSI), member FINRA/SIPC. Stage 2 Planning Partners and NFPSI are not affiliated.

This site is published for residents of the United States only. Registered Representatives and Investment Advisor Representatives of NFP Securities, Inc. may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact the NFP Securities, Inc. Compliance Department at 512-697-6000.

NFP Securities, Inc. does not provide tax or legal advice. Any decisions whether to implement these ideas should be made by the client in consultation with professional financial, tax, and legal counsel.

Asset protection plans should be developed and implemented well before problems arise. Due to the fraudulent transfer laws, asset transfers that occur close in proximity to the filing of a lawsuit or bankruptcy can be interpreted by the court as a fraudulent transfer. Proper structuring of these assets is imperative please seek proper legal and tax advice prior to engaging in re-titling/structuring of any assets. Please note that laws are subject to change and can have an impact on your asset protection strategy.