Family Business Succession Planning
At KraftCPAs, we’ve been the trusted advisors for some of Nashville’s family-owned businesses for several generations. Through the decades, we’ve assisted businesses with the challenges that often accompany transition. We’ve learned how family dynamics can affect financial management decisions and how, as an experienced, unbiased third party, we can help resolve many of the complex issues family businesses face.
Passing your business to the next generation takes skillful planning and implementation
We have the services you need and a team that’s experienced in working with multiple generations of owners. In addition to traditional audit, accounting and tax services, we can help you with:
- Succession & exit planning including if, when, and how the next generation will assume ownership and leadership of the family business. Our team includes several professionals who hold the Certified Exit Planning Advisor (CEPA) designation from the Exit Planning Institute (EPI).
- Estate & gift planning strategies specially designed to achieve your personal and family business objectives.
- Capital formation assistance to help locate capital sources to help the next generation purchase the business without depleting working capital.
- Deal structuring for favorable tax and financial consequences.
- Assistance with buy/sell agreements for business with multiple owners. All businesses — especially family businesses — need to have buy-sell agreements in place to protect the owners’ interest in the case of a shareholder’s death or retirement.
- Business valuations essential to proper estate planning and in structuring buy/sell agreements among owners.
- Benefits consulting to design the right retirement plans to achieve the results you desire for your family members and other company employees.
- Personal financial planning including tax planning, retirement planning, investment planning, wealth management, and risk management.
Estate planning is critical
An estate plan is critical for any business owner, but even more so when family is involved in the business. Unless you determine to whom, how, and when your assets will be transferred, your estate will pay higher taxes than necessary.
Without an estate plan, you may leave your family with a tax burden that forces them to sell the business to pay taxes. Even if your children want to continue your business legacy, you severely limit their options without proper estate planning.
Kraft’s estate planning specialists can advise you on the best strategies to achieve your desired transition of business and personal assets.
Consider gifts of ownership interest
Giving away assets now will help to reduce the size of your taxable estate, but proper planning is necessary. KraftCPAs can help you consider the estate and income tax consequences and the economic aspects of any gifts you’d like to make. For instance, to minimize estate tax, you should consider gifting property with the greatest appreciation potential. You can also leverage gift tax exclusions and exemptions by gifting ownership interests in the business, which may be eligible for valuation discounts.
Knowing the company’s value is paramount
Your company’s value is a major factor in determining the tax impact of bequeathing, gifting, or selling ownership interest in the business. An inaccurate value estimate could leave heirs facing a substantial estate tax bill that could force them to sell the company after your death.
The KraftCPAs business valuation team is highly regarded by the accounting and legal community for their depth of experience and unsurpassed specialized credentials.
We have conducted valuations for numerous business purposes, including:
- business succession planning
- estate planning & compliance
- purchase or sale of business assets
- mergers & acquisitions
- management planning & business analysis
- obtaining equity & debt funding
- structuring a buy/sell agreement
- income tax planning & compliance
- economic damages in litigation
- mediation, arbitration & dispute resolution
“KraftCPAs has taken care of the Zeitlin family business for three generations. We all sleep better at night knowing that KraftCPAs is looking out for our best interest.”
Shirley Zeitlin, Zeitlin Sotheby’s International Realty®