Business Succession Planning

Question 1

Succession Planning Importance

Answer 1

• setting business and personal goals
• facilitating retirement of the owner
• controlling how and when the owner exits the business
• ensuring the survival and growth of the business
• preserving family harmony
• reducing family and employee uncertainty
• maximizing family value
• minimizing, deferring, or eliminating income and estate taxes

Question 2

documenting guidelines for family participation in the business should include

Answer 2

• education and experience requirements for employment in the business
• supervision of family member performance
• family compensation practices
• procedures for hiring and termination decisions
• the extent to which the business will or will not provide special opportunities and consideration to family members.