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Succession Planning

Powers | Howard | Quimby LLP is a Certified Public Accounting firm located in Eugene, Oregon. We specialize in tax preparation for individuals, businesses, trusts & estates, and non-profits.

If you own a family business, retirement requires careful planning and is often put off to long.  There are unique challenges to retiring and transitioning a family owned business or small business.  Often a small business owner is the most valuable asset and there are concerns about what will happen when he/she is no longer running the bussiness.  As with any retirement you will want to ensure you have sufficient funds to retire.

The family dynamic can complicate the transition because of the relationships and emotions involved. Often people in a business setting are not comfortable discussing topics such as aging, death.  Financial affairs can be difficult to discuss with those outside the business.

Succession planning should be a priority for any family business considering that more than seven out of ten family-owned businesses fail to survive the transition from founder to second generation.

Developing and implementing a well-designed succession plan is essential to the survival of a family business from one generation to the next.

Some key issues to consider are:

  • Keeping it in the family. Are you going to pass the business on to your family or sell it to a third party? We can assist you with determining and weighing the advantages and disadvantages of each of these options.

  • Who's going to run the business when you're gone? Management and ownership are not one and the same. The transfer management of your business can be eclusive of transfer of ownership.  One member of your family may be currently active in the business and more suited for management.  Ownership can be transfered to family members whether they're actively involved in the business or not.

  • Minimizing the tax bite. The tax burden when transitioning a family business can be significant. There are challenges if a business does not have liquid assets.  Depending on the stucture of the transition taxes may be due when ownership is transferred.

  • Making it fair. Transferring family ownership often adds a tremendous amount of stress to individual family members. We can assist you with presentation and communication with family to ensure a smooth transition and the outcome agreeable to you and the parties involved.

Your succession plan should include and address the following:

  1. Business Valuation

  2. Business Restructuring

  3. Tax Consequences

  4. Retirement Projections

  5. Tax Projections