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Succession Planning for Family Businesses: Plan Your Exit Before Entering the Future


July_Financial_Fitness_2017Transferring a business to the next generation can be a formidable task. With many factors to consider in the process, it’s no surprise that roughly one-third of all family businesses in the United States are actually passed down successfully. Despite the odds, business owners can substantially increase the chance for success with early planning. Karen Stern, partner in charge of Brown Smith Wallace Entrepreneurial Services Group, discusses important questions and implications to consider before creating a succession plan in this month’s “Financial Fitness” column, as featured in Small Business Monthly.

Family Questions to Consider:
• Does the next generation want to own the business?
• Is the next generation capable of managing and operating the business?
• Does the next generation have the financial means to purchase the business?

Financial Implications and Other Challenges to Consider:
• Can the current owner(s) afford to sell and/or transfer the business?
• If there are children not involved in the business, how does this affect the business owner’s estate plan?
• If a “Buy/Sell” agreement is executed, how is the funding accomplished, and if there is life insurance, who pays the premiums?

To discuss your current plan or for help developing one, reach out to your financial advisor or, for independent advice, contact David Heilich, CPA, AEP® (Accredited Estate Planner) Partner and Practice Leader of the Brown Smith Wallace Family Wealth Planning Group, at or 314-983-1273.

Karen Stern, Partner in Charge, Entrepreneurial Services GroupFor more information on how a bookkeeper or CPA can help your small business, contact Karen Stern, Partner in Charge, Entrepreneurial Services Group, at 314.983.1204 or


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