The speed of change is a new reality. Business owners are retiring and transitioning their companies to new leadership. Technology is changing the way we communicate as well as the way we deliver our products or services to customers. A new core value in business is the ability to adapt to change.
Planning is complex for many businesses, because with succession—the process is personal.
Business succession planning provides owners with a customized process that evolves and improves each year, adapting to such realities of the market as new tax laws or considering new ideas based on recent experiences. All of this combines to enhance and simplify the overall customer experience of preparing for and successfully executing a business succession plan.
What Happens After Retirement?
One of the key issues we strategize with business owners on is the need for a plan after retirement; the question of “What Next?” is not just about the security of having financial resources to exit the business and retire. It is about having a plan for the next phase of life.
We must prepare ourselves for life after running a business. If we do not do this, and we defer transitioning too long, we may start to impair business value because our key employees may find better opportunities elsewhere.
Succession Planning & Tax Reform
Another new development is the advent of Tax Reform and how the many new tax provisions might impact our planning and timing of an exit. We also know that some of the current tax law changes will shift and even sunset as we move toward 2025 and 2026. Taxes are a major expense of any business sale; we want to look for ways to structure the business and plan for tax minimization well ahead of the actual planned exit.
Experienced Team of Advisors
Business owners must engage a team that not only specializes in business succession planning, but is aware of current trends in business succession strategies. The team must be able to adapt their processes to accommodate those changes. At Sikich, change management is our business strategy. Adapting to change and positioning our business resources to our clients’ current and future needs is who we are.
Business succession planning is about discipline and knowing how to manage the numbers and risk to always be positioned for succession. It is an art form in that change in the environment requires some judgment and some delicate navigation to achieve a successful outcome. Sikich has a custom process for business owners to deliver business succession planning advice that is process-driven and comprehensive, but also adapts to the changing environment. Our process is changing and evolving as we navigate forward in the new normal of change management in our businesses.
Please contact our team for more information on how you can best prepare your business with succession planning.