If you own a family business, retirement isn't simply a matter of deciding not to go into the office anymore. You've got some critical questions to answer like...
"What happens to the practice when you're no longer running it?" and
"Will you have enough money to retire?"
The family dynamic complicates the whole transition because of the relationships and emotions involved. Most people are not comfortable discussing topics such as aging, death, and financial affairs.
Comfortable or not, 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.
We help you with these key issues -
Keeping it in the family. Are you going to pass the veterianry practice on to a son or daughter veterinarian, or sell it to a third party? We help you weigh the advantages and disadvantages of your options.
Who's going to run the practice when you're gone? Management and ownership are not one and the same. You may decide to transfer management of your veterinary practice to just one of your children but transfer equal shares of business ownership to all your children, whether they're actively involved in the business or not. Or, the practice real estate may be an asset that allows for equitable treatment of your heirs.
Minimizing the tax bite. The tax burden when transitioning a veterinary practice can be significant. The challenge is that a family business is not generally a liquid asset, but taxes are typically due when ownership is transferred.
Making it fair. Transferring ownership often adds a tremendous amount of stress to individual family members. Plans should ensure appropriate communication with all parties to enhance understanding and feelings of equitable treatment.
What we do for you...
Once we understand how you feel about the foregoing key issues, we begin constructing your succession plan including these components: