Any business of any size can benefit from succession planning. Succession planning looks to the future and considers what might happen if owners or a single owner steps away and who is empowered to make these decisions when it occurs? Succession planning is all too frequently neglected in the United States but it is essential to prepare for a leadership change.
Business owners and entrepreneurs alike can benefit from the process of succession planning. Many people get inundated with the day-to-day tasks of running a business, however, three out five small businesses don’t have a succession plan in place, according to a recent study done by Nationwide. Preparing for a transition for leadership, however, is a crucial aspect of estate planning and one that should be considered immediately, after you have founded the company. It is difficult to think about the end of the company when you are just starting out, however, it is important to consider the benefits of future succession.
Westwood Financial recently completed more than a $1 billion restructuring plan to position the company for future succession and to ensure that appropriate procedures were in place to allow the company to continue on. Many people who own family businesses are likely to expect that their children will take over the company when they pass away but relatively few of these businesses ever pass on to the next generation. Having a succession plan in place empowers relevant individuals with the opportunity to make necessary decisions in immediate circumstances. Do not hesitate to schedule a consultation with a business succession planning attorney immediately.
