Business owners have usually worked most of their lives to build successful businesses.
This achievement leads to a high level of satisfaction and significant wealth for the family. A goal of building a family business is to pass it on to the next generation with a minimum of cost and family problems. However, problems often arise, because of the failure to think ahead about transfer tax issues and the differing interests that family members may have.
At some stage you will decide to leave your business; perhaps you have decided to sell, retire or do something else. Regardless of the reason, having a succession (or exit) plan in place will help you to smoothly transition out of your business.
You can start succession planning years ahead of time; having a plan can be useful if there is an unexpected event, such as illness or death. Without a plan the future of your business can be at stake. Early planning also helps you to maximise the value of your business.