It is an often repeated fact that most businesses will not survive inter-generational transition. One study of family businesses concluded that over a lifetime, 80% would fail, and that of the 20% remaining, only 13% would still be in
the family after the lifespan of a proprietor.
How good of a job do we do of servicing the business needs all of our entrepreneur clients have? How effective are you in identifying the key factors in determining likely success or failure of a business? When your client says everything is fine, are you able
to ask the questions that provide a needed reality check?
This month, the East Side Business and Financial Forum will explore the "spots on the x-ray" that any financial or tax professional must know to look for to be successful in this area. We'll look at some of the basic legal and tax issues that come up with regularity also. Questions we will answer include:
• What are the most obvious things that show you (and the business owner) that things are long, long way from "All Set"?
• What documents should the client have - and does she have them?
• What corporate actions does the client know she has put off too long?
• What does the estate plan for a business look like?
• What are the major issues a good business succession plan should address?
• Does your client have a Redemption Agreement or a Cross Purchase Agreement? What other options are there? Does it matter?
• What are the most likely things you and the other professionals never talked about?
• Why is it impossible to succeed in business succession without a team approach?
• What are the tax pitfalls inherent in "boilerplate" planning, and what can I do to avoid them?
• What is the "transfer for value" rule?
• How can the IRS just ignore our agreement?
Please join Cathleen S. Lorenz, CPA, MST, Principal, Godfrey Hammel, Danneels & Company, PC and me on Thursday May 28th at 7:30 a.m. at the Grosse Pointe Yacht Club for an exploration of:
Buy Sell Basics