Succession Planning: Your Roadmap for

SuccessPresented by(Name, CPA)

Member, The Ohio Society of CPAs

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Succession Planning

• A documented plan for partners, heirs and successors to follow in the event of a death, disability or retirement

• If the owner unexpectedly passes away or is incapacitated, what happens to the business?

• No plan means risking monetary losses and possibly losing the business itself.

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Planning for Sudden Absences

• Succession plans can also be tailored to handle unexpected short and long term absences.

 • Examples include vacation,

unexpected personal illness or an illness in the family.

 

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Five Steps of Succession Planning

1. Assemble a team of relevant professionals:

• CPA• Lawyer• Estate planning experts

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Five Steps of Succession Planning

2. Identify and prepare successor(s)

• Recruit• Develop• Select• Announce

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Five Steps of Succession Planning

3. Document plans Include plans and documentation for:• Distribution of business stock and other assets• Debt retirement schedules• Life insurance policies• Division of responsibilities among successors• Buy-sell agreements between partners and heirs

o Consider establishing a formula for calculating the value of the business

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Five Steps of Succession Planning

Capital considerations• Emergency capital• Strategies for mitigating estate

and gift taxes

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Five Steps of Succession Planning

4. Share with relevant people• Lawyer• CPA• Key employees• Family members

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Five Steps of Succession Planning

5. Review regularly• As the business and business

environment changes, make sure the succession plan is updated accordingly.

• The plan should be flexible enough to be updated easily.

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For Further Information:

For further information or assistance with succession plans, please contact me:–Name–Company–Address– E-mail– Phone

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