What Is Business Transition and Succession Planning? 

    You have decided it is time to leave your business. But are you prepared to exit in a way that protects you and the company? Business transition and succession planning involves creating an action plan to address the financial and logistical details of transferring a business to new owners and/or new management. 

    A well-crafted exit strategy addresses the owner's financial preparedness and mental readiness, as well as the business’s ability to function effectively without the current leadership. Professional guidance helps you potentially avoid costly errors and oversights. Financial advisors at EP Wealth coordinate with the rest of the transaction team (e.g., CFO, accountant, attorney, appraiser) to take the guesswork out of business succession planning to help protect you and your company as you begin a new chapter. 

    Why You Should Plan Now for Your Exit from Your Business 

    As a business owner, you're deeply invested in your business, both emotionally and financially. Yet life's unpredictability means that even if you’re not considering retirement or a new venture, unforeseen circumstances like illness or disability could disrupt your plans. This is why early planning for your business's succession is crucial. 

    Are you prepared to hand over your business without a well-thought-out exit strategy? Without one, you may be unable to leave on your own terms or make sure that your business is in good hands. Business transition planning serves a few essential functions: 

    • Maintaining business continuity: A strategic transition plan addresses all possible variables and helps safeguard against issues that may impact operations and compromise the integrity of your business. 
    • Managing company value: Proactive planning allows you to make strategic decisions that may make your company more desirable to potential buyers, paving the way toward your personal financial goals when you sell. 
    • Potentially minimizing tax implications: A sound exit plan considers state and federal tax laws and implements strategies to reduce the tax liability for the current owners and the new leadership.  
    • Facilitating leadership transition: Succession planning provides a clear outline for transferring responsibility to new ownership, with the goal of laying the groundwork for a seamless handover. This can be especially important if the business is being transferred to a family member. 
    • Protecting employees and customers: A predetermined succession may allow your business to continue running smoothly, meeting customers' needs and protecting employees’ jobs.
       

    Our Approach to Business Succession Planning

    At EP Wealth, we create a tailored financial strategy to guide your business succession and transition. Our advisors begin by assessing the current state of your business and understanding your long-term goals as an owner.

    We work with you to determine the most effective way to value your business and identify strategies for possibly maximizing its value before the transition. We also design tax-efficient structures for transferring ownership, aiming to minimize the tax impact of the transition while preserving the financial health of the business.

    Additionally, we explore financing options for potential buyers, helping to structure deals that align with both your financial objectives and the buyer’s needs. Our team provides ongoing financial guidance after the transition to help manage tax implications, optimize the business's financial structure, and support its long-term success.

    EP Wealth Succession Planning for Business Owners

    Waiting too long to plan your leadership transition can be a costly mistake. With a trusted financial advisor in your corner, you can make informed decisions that make sense for your business, employees, and customers. Set up a plan to protect your legacy and your financial future with business planning services from EP Wealth.

    Contact an advisor to learn more.

    DISCLOSURES:

    • EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability.
    • Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
    • Hiring a qualified advisor and/or financial planner does not guarantee investment success, and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied results or projections being represented here will be met or sustained.
    • The need for a financial advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.  
    • Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.   
    • EP Wealth Advisors (“EPWA”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information presented. All expressions of option are subject to change without notice. 
    • All investment strategies have the potential for profit or loss. Different types of investments and investment strategies involve varying degrees of risk, and there can be no assurance that any specific investment strategy will be suitable or profitable for a client’s portfolio. The risk of loss can never be eliminated even if working with a professional. 
    • There is no guarantee or warrantee that a client or prospective client that engages EP Wealth Advisors, LLC in Business Planning services will experience investment success and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied service, offering, report, or analysis represented here will be offered or delivered. The services offered to clients will vary and depend on several factors.

    FIND A FINANCIAL ADVISOR NEAR YOU

    Our breadth of coverage across the U.S. means we’re local—here to serve your needs at your convenience.

    SUBSCRIBE AND STAY CURRENT WITH EP WEALTH'S INSIGHTS