Business Succession Planning

 

One of the important decisions a business owner must face is when and how to step out of the business—in other words, business succession planning. Do you expect to retire from your business? Do you have a plan in place? What would happen to your business if you were to die today? Do you have children you hope to bring into the business? These are questions only you can answer, and your answers will lead you and your financial and legal advisors to a course of action.

THE CHOICES

There are a few basic alternatives.

Lifetime Gift/Sale to Your Family. If your family is involved in the business, you could give or sell your business to them.

Sale to Non-Family During Your Lifetime. If your family is not involved in the business, you could sell the business to a non-family member when you are ready to move on.

Gift/Sale Upon Death. If you are not ready to retire, you could simply provide for the sale or distribution of your business upon your death.

Sale to Co-owners. If you co-own the business with others, you could enter into an agreement with them to sell your business interest upon the occurrence of one or more events.

Also, if you actively manage the business, you should also make sure to have a plan in place for one or more persons to take over the management of the business if you are unable to act.

As you navigate through many steps, our Business Succession Planning Wealth Strategy Report will highlight some key areas and guided steps for:

  • LIFETIME GIFT/SALE TO YOUR FAMILY
  • SALE TO NON-FAMILY
  • GIFT/SALE AT DEATH
  • SALE OF BUSINESS TO CO-OWNERS — DEALING WITH THE 5 “DS”

A private wealth advisor can help you get started.

Our advisors can help you follow your passions, build a legacy and have a positive impact on others.

Important Disclosures All data, projections and opinions are as of the date of this report and subject to change.

Investing involves risk, including the possible loss of principal. Past performance is no guarantee of future results.

Bank of America, Merrill, their affiliates, and advisors do not provide legal, tax, or accounting advice. Clients should consult their legal and/or tax advisors before making any financial decisions.

The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America") and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S" or “Merrill"), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of Bank of America Corporation.

All recommendations must be considered in the context of an individual investor’s goals, time horizon, liquidity needs and risk tolerance. Not all recommendations will be in the best interest of all investors.

Investments have varying degrees of risk. Some of the risks involved with equity securities include the possibility that the value of the stocks may fluctuate in response to events specific to the companies or markets, as well as economic, political or social events in the U.S. or abroad. Bonds are subject to interest rate, inflation and credit risks. Treasury bills are less volatile than longer-term fixed income securities and are guaranteed as to timely payment of principal and interest by the U.S. government. Investments in foreign securities (including ADRs) involve special risks, including foreign currency risk and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are magnified for investments made in emerging markets. Investments in a certain industry or sector may pose additional risk due to lack of diversification and sector concentration.