Since the succession plan can be a critical component of an organization’s strategic and tax plans, it is important to get started early.
A succession plan needs to take into consideration not only the strategies for risk management and tax minimization, but also the human dynamics of a family, other shareholders and highly-placed employees. A thorough understanding of the family and other related parties is needed from both a financial and human perspective.
Succession planning aims to:
- Encourage owners and/or family members to plan for the future;
- Assist in the development of a plan to transfer management from one generation of owners to another taking into consideration the strengths of the individuals involved;
- Minimize the disruption in business by developing a process to transfer knowledge and control; and
- Minimize the tax on the transfer of assets from one generation to another (estate planning).
McLarty & Co uses a comprehensive package of concepts and tools developed by a company called SuccessCare®. The SuccessCare® program is designed to guide business owners, partners and families through the transition to successors or new owners.