I have defined my personal goals and vision for the transfer of ownership and management
I have assembled a team of legal, accounting, business brokerage and financial planning experts to help me with developing and executing my exit plan
I have informed my customers and other key stakeholders about my exit plans
I have developed a clear vision for the future of the business
I have a buy-sell agreement in place
I have had a business valuation done by a certified professional
I have completed a financial analysis of my company and will have a financial performance improvement plan completed before the sale
I have completed an operational analysis of my company and will have an operational performance improvement completed before the sale
I have prepared a retirement plan that includes:
A statement of my objectives
A method for structuring the succession including tax consequences
A schedule for transferring ownership
Defined management roles for family members (if applicable)
Defined transitional roles for family members (if applicable)
Defined transitional role for non-family members
Activities for communicating my plans to other stakeholders
Contingencies plans for unexpected events
I have determined my income needs for my retirement
I have calculated how and the degree to which the business will fund my retirement needs
I have a plan in place for supplementing my retirement income in the case that the business does not supply enough income
I have plans in place for diversifying my pool of retirement capital
I have talked to my CPA to get an understanding of how various deal structures will impact after-tax sale proceeds
I have talked to my CPA to get an understanding of strategies I can employ to defer or eliminate the payment of taxes, including
Gifting
Trusts
Outright sale
Installment sale
Buy/sell agreement
Employee Stock Ownership Plan
Family partnership
I have talked to my CPA and have strategies in place to avoid double taxation issues upon the sale of the business, including:
The pros and cons of converting a C Corp to an S Corp before the sale
The pros and cons of converting an S Corp to a C Corp before the sale
I have talked to my CPA and other advisors about the issues and tax consequences of valuing my business and personal goodwill as part of selling the business
I have a written succession plan that includes milestone dates for actions
I have selected a successor and candidates for other key management positions
I have qualified my successor as having the necessary financial resources to buy and maintain the business
I have a training program in place for my successors and management candidates
I have a plan and I am currently helping my successors build their profile and credibility with customers, employees, business advisors and the business community
I have a contingency plan in place that outlines alternative courses of action if the intended succession does not occur
Have dates been established to review, evaluate and adjust the plan annually?
I have made a decision about keeping ownership of the business in the family
I have discussed my plan with my spouse and children
I have objectively assessed the capabilities of my children and other family members for continuing the business
I have developed a plan for dealing with family members who will not be involved in the business
I have a contingency plan in place for dealing with all aspects of transferring the business to my family in the case of my premature death:
I have a contingency plan in place for dealing with all aspects of transferring the business to my family in the case of my disability:
I have established family communication practices to integrate family members into the management and ownership succession process
I have a management succession plan that includes:
I have an ownership succession plan that includes:
The successful transfer of a family-owned business to the next generation takes years. Planning ahead gives family-owned business owners like you a chance to ensure that you’re making the right decisions for the future of your business — whether it’s in choosing a successor, considering important tax strategies or securing a business valuation.
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