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Needed for Every Succession Plan

November 15, 2016

Regardless of the method used in a succession plan ownership will be transferred to another owner. Needed before any transaction can be planned or consummated is the following:

  • An estate plan for the owner
  • A financial plan for the owner
  • An analysis of the cash flow from the transfer to the owner
  • An analysis of the cash flow from the successor and sources of the funds
  • Valuation of the business
  • Possibly a banker
  • Due diligence reviews by successor
  • Employee should be represented by an advisor – definitely an attorney and possibly an accountant and valuation specialist
  • There should absolutely be a buy-sell agreement with strong restrictive covenants
  • Compensation agreement for all owners that work in the business

This list is not a suggestion, it is a must do. Get it done!

One Comment leave one →
  1. 6hawthorne permalink
    November 15, 2016 7:18 am

    Hi Ed You make great list Bob agler

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