Howard & Hardyman LLP

Business succession planning - start today

It may seem counterintuitive to plan for business succession when a company is just getting off the ground, but experts recommend it. So when busy Illinois entrepreneurs start setting things in order for their opening days, thinking through who will take over the business some day is just as important as planning who will get it started.

The U.S. Small Business Administration has recommendations for this process, including the kinds of questions company founders should ask. Because, according to the SBA, profitable companies are easier to sell, it is imperative to set the business up for success from the start. Owners should question how they will maintain the financial strength of their organization through the years so that when it comes time to turn it over to others, it will continue to thrive. 

The SBA also encourages deciding early on who will get the reins passed on to them and how current leadership will prepare the new owners for the transition. Will they buy the company outright or will they need assistance financing the transaction? The answer to this question could have a significant impact on who takes over.

Another relevant question is whether it will it be "a family member or trusted employee." Again, answering this - preferably early in the business planning process - will help smooth the transition later.

Fidelity Investments also encourages planning an exit strategy that is "tax-friendly." One way to do this well is to "work with a team of trusted professionals." Fidelity suggests including an estate planning attorney, financial advisor and CPA on the team. 

No Comments

Leave a comment
Comment Information
  • Illinois State Bar Association
  • WCBA | Winnebago County | Bar Association | Established 1996
  • United States Court Of Appeals | Seventh Circuit
  • State Bar of Wisconsin
  • United States District Court For The Northern District Of Illusions
Serving Northern Illinois For Decades
Email Us For A Response

How Can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location:

Howard & Hardyman LLP
124 N. Water Street, Suite 100
Rockford, IL 61107

Phone: 815-516-1549
Rockford Law Office Map

Office Number:

Fax: 815-964-8779