Business Succession


Business succession planning focuses on issues specific to business owners and shareholders. For most business owners, the financial success of that business has an immediate and ongoing impact on the economic security of their families. Without proper planning, you may have difficulty tapping the value of your business to support your retirement, or your family may not realize the full value of your business at your death.

Business Risk Management identifies options for handling the risks of starting and running a business. There are several factors that can impact how safe your personal and business assets are from risk:

  • Business entity
  • State of residence
  • Business management
  • Human Resources
  • Taxes
  • Executive compensation encompasses both cash and non-cash approaches. The size and organization of the business significantly influences your compensation structure. Examples of compensation include insurance benefits, qualified retirement plans, stock options, personal performance initiatives, and other tax-advantaged nonqualified plans.
  • Large businesses tend to provide owners with sophisticated and sometimes complex compensation formulas.
  • Small businesses tend to adopt a more straightforward compensation approach.

Succession planning looks at the transition of a business from an existing owner to a new owner. Although key factors vary extensively with business type and industry, there are some factors common to all business transitions:

  • Creating a sellable business
  • Positioning a business for sale
  • Formulating specific transition mechanics at the time of sale
  • Determining valuation and terms
  • Grooming senior management
  • Creating strategic alliances

This material has been provided for general informational purposes only. Investors should consult with a business planning professional regarding their individual situation. 

Investments are not FDIC-insured, are not guaranteed by the bank, and are subject to risks, including possible loss of the principal invested