Business Succession Evaluation

Business Succession Evaluation (BSE) is a comprehensive confidential analysis of your business’ current succession plan by a qualified business and estate planning attorney. This evaluation is offered by Brown & Vogel, Chartered at NO OBLIGATION TO YOU. The process considers how all of the business owners’ goals and objectives are reflected in your current plan and, when appropriate, provides planning alternatives that better achieve your desired results. This process confirms that your plan transitions the business to whoever you wish in the most efficient manner possible.
PROVIDE FOR FAMILY

BSE confirms that your business succession plan will provide full and fair value for the business interest. If planning deficiencies are identified, alternatives are provided to ensure your business continuation objectives are met.

RETAIN CONTROL OF THE BUSINESS

Without a suitable business succession plan, former spouses and children of a deceased owner commonly become unintended business partners of the surviving owner(s). BSE verifies the business interest of a deceased owner will remain with surviving owners.

ASSURE EMPLOYEES

While each business owner’s first planning priority is commonly to provide for his/her own family, all of them also care about the employees and their families. BSE confirms that a plan is in place to continue the business and assure your employees of their future employment.

CHANGING BUSINESS VALUE

Failure to periodically review the value of a business to ensure the appropriate amount of funding is available may result in a shortfall when required funds are needed for a buyout. The BSE process includes a detailed analysis of the current and projected business value to make certain the business owners’ heirs receive fair value for their business interest, and are not left wanting due to inadequate funding.

  • On average, 37% of the business owner’s net worth is tied up in the business.*
  • Only 27% of business owners have a succession plan in place.**
  • Less than 30% of family owned businesses survive to the 2nd generation and less than 12% to the 3rd generation with only a 3% survival rate to the 4thgeneration.***

* LIMRA’s Small Business Owner Study, 2009
** The Principal, Business Owner Market Study, 2010
*** Joseph Astrachan, Ph.D., editor, Family Business Review

STEP ONE – GATHER THE INFORMATION

Your completion of the BSE Business Owner Profile (Download here), along with a copy of any existing buy-sell agreements and the last three years of financial statements, provides the necessary data to initiate the process with our office.

STEP TWO – ANALYSIS

The objective analysis of the business succession plan includes (1) a review of your goals and objectives (2) a review of the buy-sell agreement, (3) identification of potential risks, and (4) presentation of more efficient planning alternatives. The results of the analysis are contained in a comprehensive, easy-to-understand report. This is offered at NO OBLIGATION TO YOU.

STEP THREE – RESULTS MEETING

Attorney, Steve Brown, will present the report identifying planning alternatives and suggested updates. An action plan clearly identifying the next steps will be presented and, if desired, Steve Brown will do this in collaboration with your team of professional advisors, including financial planners and accounting firms to ensure that your planning goals are met.

Contact our office to get started on your business evaluation.