Exit & Succession
What is business transition?
Business transition is the process of gaining freedom from your business. Whether your intention is to transfer your business to your children, sell it to key employees, sell to a competitor, or just wind it down, having a plan in advance improves your opportunity for success. When the business owner fails to prepare, even the most successful business can become a liability to the owner or to his or her heirs.
What are the benefits of having a strategy?
A well-designed plan can help the owner to achieve a variety of goals depending on his or her specific situation and objectives. For example, a transition strategy may allow the business owner to:
- Monetize value that is locked inside the company
- Gain personal freedom from the day-to-day obligations of running the business
- Share the responsibility and rewards of ownership with key employees or family members
- Reduce gift, estate and income taxes related to any transfer of ownership
- Maintain family harmony
- Preserve a legacy via business continuity
When is the right time to begin preparing for a transition?
Whether your timeframe is six months or ten years, it is best to begin planning as early as possible. Business owners have unique needs as their financial affairs are closely linked with their businesses. In some cases, there are substantial tax advantages available when certain transfers are performed years in advance of a full change in control.
How does the transition process work?
Heritage Financial Services believes in a team approach to business transition strategies. You are less likely to err and more likely to attain your goals when your most trusted advisors such as your accountant, lawyer, financial advisor are involved in each phase of the process.
Mark Scott, who specializes in business transitions, takes lead responsibility for managing the process including coordinating the advice and activities of the client’s other key advisors. This specialist develops detailed timelines and assigns responsibilities for each set of tasks to the appropriate member of the transition team. This team approach can yield a strategy that is in sync with the owner’s personal financial situation and estate plan.
Our value proposition
Heritage Financial Services has in-house experts who are dedicated exclusively to business transition planning and have helped business owners achieve their financial goals. Contact Heritage Financial Services today for a free consultation. We design and develop strategies that can help business owners in the following areas:
Whether your intention is to sell your business to key employees, transfer it to your children, or seek a sale to a strategic buyer, Heritage Financial Services has the experience and expertise to help you make an informed decision on the right course of action. We will work with you to execute a strategy that fits your needs in the most tax efficient way possible. Not only will we guide you through the process, but we can also take the lead in implementing the strategies necessary to pursue your goals over your desired timeframe, whether a few months or many years.
Contact Mark Scott at Heritage Financial Services today to learn how to preserve and enhance the equity that you’ve built through your business over a lifetime. Our Business Strategies Team will work with you to clearly define your goals as a business owner and to develop and monitor a strategy that will help you stay on target.
Separate from the financial plan and an advisors' role as financial planner, an advisor may recommend the purchase of specific investment or insurance products or accounts. These product recommendations are not part of the financial plan and clients are under no obligation to follow them.
This information should not be considered as specific tax/legal advice. Please consult with a tax/legal advisor for specific advice.