According to a recent national survey, 25-33 percent of family business shareholders who are nearing retirement haven’t completed any estate or succession planning other than writing a will. Some experts project that 75 percent of all family businesses will fail after the death of the founder. Business succession planning involves much more than just deciding how your assets will be divided after you die – it contemplates how the business will thrive after the founder is long gone.

A good business succession plan creates a road map for partners, heirs and successors to follow in the event of your death, disability or retirement. This plan can include a program for distribution and/or sale of business equity and other assets, repayment of business debts, purchase of life insurance policies to ensure liquidity, buy-sell agreements between partners and their families, division of responsibilities and authority to run the business among successors, and any other elements that affect your business assets. The plan usually contains guidance on how to determine the value of your business. It also must be flexible, recognizing that business, family and health situations are dynamic, and your plan must be easy to modify and amend.

Part of the business succession planning process involves an understanding of how the business will be taxed for estate planning purposes. Will the business cause the founder’s estate to incur significant estate taxes that must be paid within nine months of death or will there be sufficient liquidity from life insurance proceeds to negate the tax burden? Alternatively, does the founder control enough equity in the business so that taxes can be deferred under Code Section 6166 for up to 15 years? Can you mitigate the impact of the estate tax by engaging in lifetime gifts and sales of equity interests to your family, successors or trusts for their benefit?

To obtain assistance with your business succession planning needs, please call Wayne Zell at 703-218-2177 or email him at wayne.zell@ofplaw.com.

Latest Blog

  • Navigating Rough Waters Video 2-Death & Disability Case Study Please join Wayne M. Zell, Esq. for this 2nd of eight videos of Episode 3: Navigating Rough Waters, which continues the discussion of case studies on planning for death or disability of a business owner. This is part of the third of six Business Success(ion) Planning Bootcamps for Professional Advisors conducted at the offices of Odin, Feldman & Pittleman, P.C. from March 2017 – October 2017. This segment was recorded on May 17, 2017. The sessions are being compiled into a book entitled “Business Success(ion) Planning“, which will be available in the Spring 2018. https://youtu.be/EUB5SLknXAU Read more
  • Navigating Rough Waters Video 1-Death and Disability Case Study 1 Please join Wayne M. Zell, Esq. for this 1st of eight videos of Episode 3: Navigating Rough Waters, which focuses on how to plan for death or disability of a business owner and adds a case study to illustrate. This is part of the third of six Business Success(ion) Planning Bootcamps for Professional Advisors conducted at the offices of Odin, Feldman & Pittleman, P.C. from March 2017 – October 2017. This segment was recorded on May 17, 2017. The sessions are being compiled into a book entitled “Business Success(ion) Planning“, which will be available in the Spring 2018. https://youtu.be/sdpeTjQmy30 Read more
  • Growing and Soaring Video 8-Compensation and Managing Growth Please join Wayne M. Zell, Esq. for this 8th of eight videos of Episode 2: Growing and Soaring, which continues the discussion on compensation and focuses on how to manage growth. This is the final part of the second of six Business Success(ion) Planning Bootcamps for Professional Advisors conducted at the offices of Odin, Feldman & Pittleman, P.C. from March 2017 – October 2017. This segment was recorded on April 26, 2017. The sessions are being compiled into a book entitled “Business Success(ion) Planning“, which will be available in the Spring 2018. https://youtu.be/lW8eZUvT8cE Read more
  • Growing and Soaring Video 7-Compensation and Incentives Please join Wayne M. Zell, Esq. for this seventh of eight videos of Episode 2: Growing and Soaring, which focuses on compensating employees with cash and real and synthetic equity. This is part of the second of six Business Success(ion) Planning Bootcamps for Professional Advisors conducted at the offices of Odin, Feldman & Pittleman, P.C. from March 2017 – October 2017. This segment was recorded on April 26, 2017. The sessions are being compiled into a book entitled “Business Success(ion) Planning“, which will be available in the Spring 2018. Read more
  • Growing and Soaring Video 6-Keeping the Business Fueled Please join Wayne M. Zell, Esq. for this sixth of eight videos of Episode 2: Growing and Soaring, which focuses on funding sources and funding types for business. This is part of the second of six Business Success(ion) Planning Bootcamps for Professional Advisors conducted at the offices of Odin, Feldman & Pittleman, P.C. from March 2017 – October 2017. This segment was recorded on April 26, 2017. The sessions are being compiled into a book entitled “Business Success(ion) Planning“, which will be available in the Spring 2018. Read more
  • Growing and Soaring Video 5-More on Appraisals and Valuation Please join Wayne M. Zell, Esq. for this fifth of eight videos of Episode 2: Growing and Soaring, which continues the discussion of business valuation and appraisals. This is part of the second of six Business Success(ion) Planning Bootcamps for Professional Advisors conducted at the offices of Odin, Feldman & Pittleman, P.C. from March 2017 – October 2017. This segment was recorded on April 26, 2017. The sessions are being compiled into a book entitled “Business Success(ion) Planning“, which will be available in the Spring 2018. Read more
  • Growing and Soaring Video 4-Appraisers and Appraisals Please join Wayne M. Zell, Esq. for this fourth of eight videos of Episode 2: Growing and Soaring, which focuses on business valuation and selection and use of appraisals and appraisers. This is part of the second of six Business Success(ion) Planning Bootcamps for Professional Advisors conducted at the offices of Odin, Feldman & Pittleman, P.C. from March 2017 – October 2017. This segment was recorded on April 26, 2017. The sessions are being compiled into a book entitled “Business Success(ion) Planning“, which will be available in the Spring 2018. 4 Read more
  • Growing and Soaring Video 2-Getting to the Next Level Please join Wayne M. Zell, Esq. for this second of eight videos of Episode 2: Growing and Soaring, which focuses on the on strategies to get to the next level in business. This is the second of six Business Success(ion) Planning Bootcamps for Professional Advisors conducted at the offices of Odin, Feldman & Pittleman, P.C. from March 2017 – October 2017. This segment was recorded on April 26, 2017. The sessions are being compiled into a book entitled “Business Success(ion) Planning“, which will be available in the Spring 2018. Read more
  • Launching Your Business Video 3 – Infrastructure and Professional Team Building Please join Wayne M. Zell, Esq. for this third video segment of Episode 1: Launching the Business, which focuses on building the proper infrastructure and choosing your professional team to assist you in starting a new business and building a more successful one. This is the first of six Business Success(ion) Planning Bootcamps for Professional Advisors conducted at the offices of Odin, Feldman & Pittleman, P.C. from March 2017 – October 2017. This segment was recorded on March 22, 2017. The sessions are being compiled into a book entitled “Business Success(ion) Planning“, which will be available in the Spring 2018. Read more
  • Launching Your Business Video – SWOT Analysis and Valuation Issues Please join Wayne M. Zell, Esq. for this second video segment of Episode 1: Launching the Business, which focuses on SWOT analysis (strengths, weaknesses, opportunities and threats) and valuation strategies in starting a new business and building a more successful one. This is the first of six Business Success(ion) Planning Bootcamps for Professional Advisors conducted at the offices of Odin, Feldman & Pittleman, P.C. from March 2017 – October 2017. This segment was recorded on March 22, 2017. The sessions are being compiled into a book entitled “Business Success(ion) Planning“, which will be available in the Spring 2018. Read more

Videos


Podcasts