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Departure from a business is always a complex process. At the end of the process, new people will be making decisions and at least some assets will probably be differently deployed. In some cases, the departure is deliberate; in some cases it results from an accident or an illness. In all cases, there is some planning that can be done ahead of time to make the transition easier and more effective for the people in the business as well as the people who depend on the business. This planning is extremely important; the only alternative is often the destruction of a large portion of the business's value.
EPIC Wealth Advisors can help business owners design and implement every aspect of an exit plan. EPIC Wealth Advisors can guide them through the process of considering the implications of a decision to sell the company as well as through the assessment of alternatives. In addition, EPIC Wealth Advisors professionals, working with other financial, legal, and accounting experts can help the owners ensure that a sale results in the maximum net proceeds possible.
In many cases, owners of privately held businesses decide not to sell the business to outsiders but to transfer it to the next generation. This transition is also a complex one. The way the business is transferred can have significant economic implications for both the former owners and the new owners. In addition, issues of leadership and readiness face both the departing generation and the next one.
Planning ahead can address this full range of issues. EPIC Wealth Advisors works with the transferring owners and their other advisors to reduce the costs of transferring ownership while also maximizing the benefits to them. Appropriate coordination of this planning with the departing owner's estate planning can also ensure that all heirs are provided for, in a way that will not complicate the decision-making capabilities of the heirs who remain to manage the business. EPIC Wealth Advisors can also provide education, training, and other resources to support the new leadership.
As important as planning for deliberate departures may be, planning for unexpected contingencies such as accidents and illness may be more important. When an owner-executive departs from a business because of death or illness (even if the illness is temporary) it can create a significant crisis. Because the event is unplanned, there is often no one prepared to step into the role of senior executive. In many cases, there may be no one who even knows what the owner-manager might have been working on. At the same time, the owner's family may be suffering an emotional crisis at the same time as it faces acute financial need.
EPIC Wealth Advisors can work with business owners to implement plans that will provide the financial and human resources needed to reduce the immediate demands on the family as well as the potential impact of the crisis on the operations of the business in the event of an emergency. Well structured insurance - disability or life insurance, depending on the situation - can provide immediate funds for the family's immediate and estate tax needs as well as funds the company may need to hire whatever executive assistance may be needed to sustain effective operations. Carefully designed buy-sell and redemptions agreements, along with a well-trained and informed staff can also make major contributions to the company's health and its ability to support the family in the longer term.
EPIC Wealth Advisors works with company executives to create plans for all aspects of exit and contingency planning. EPIC professionals will work with the company's and the owner's advisors, as well as any other specialists needed, to design effective plans, integrate them with the business's and owner's other planning activities, and execute the steps needed for implementation of those plans.
Contact us for more information.
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