Business Succession Planning is similar to packing your vehicle to make a long, cross country trek. You have to pack the vehicle knowing the transition might get bumpy, there might be several different people behind the wheel, and you may need easy access to some of the packed contents. What you need is a plan so you can pack the trunk to maximize space and efficiency. The same goes for a Business Succession Plan.
Family owned businesses are the backbone of the American economy, but statistics seem to indicate that only a small percentage of family owned businesses are able to survive a transition to the second generation. In the cases where the business does not survive the transition, it is as if the vehicle was not packed efficiently to survive the long trek. Our job at Steinbacher, Goodall & Yurchak is to equip you with all the tools and information possible so that the transition is a successful one, and the business survives for future generations. A Business Succession Plan is not specific to businesses that have a high net worth. Every business that is transitioning from one generation to the next should have a Business Succession Plan in place. You worked hard to make your business successful, and it is our job to help you continue that legacy for future generations.
Our office provides guidance and formulates a plan designed to assist business owners in the transition of their businesses to the next generation in the most efficient and economic way possible. We consider the tax ramifications and liability issues and address any potential road bumps that could derail the transition.
Before you pack your vehicle for your cross country trek, you take into account the items you are packing and how they will fit in the trunk of your vehicle. Just like a vehicle, a family has very unique attributes. Our job is to get to know you, the individuals involved in the Business Succession Plan, and the business itself so we can design a plan that is specific to your needs and concerns. Because our job is to implement a plan that meets your goals, we consider the Pennsylvania inheritance tax, federal gift and estate tax, and income tax implications of the business transition, keeping in mind that sometimes the tax ramifications are not your most important priority in the Business Succession Plan. We also strive to create a plan that addresses any creditor issues, including long-term care costs, that may affect the business transition. We use a variety of planning techniques, including, but not limited to, trusts, patterned gifting, outright transfers, sales, and buy-sell agreements, to facilitate a successful Business Succession Plan.