Last time in the OBJ, we offered the story of Bob “Bobbie” Smith. A smart and successful businessman; he thought he had everything covered. The business was running smoothly with great employees. His Wills were up to date. His financial retirement plan had just been completed. He would soon sell the business and retire comfortably at the family cottage.
Then Bobbie died suddenly.
Without a business succession plan in place, the value of the business quickly eroded, and the estate had to sell family assets. Had he completed a business succession plan using the Scrivens Step by Step approach, Bobbie’s family would not be facing the significant problems it is now.
What is a Business Succession Plan?
Firstly, it is not an estate plan. It is a plan for the transition of your business, in total or partially, whether over a period of time, or at a precise time. It is planning for an outright sale to a third party, or a sale to key employees, or a transition to family members. It is about being continuously ready and positioned to make the best decision for the transition of your business.
What are the Scrivens steps to a Business Succession Plan?
1 - We hold initial discussions and meetings.
2 - If you proceed, we agree on a fee.
3 - The engagement letter is signed.
4 - Key people are interviewed, documents are reviewed and the analysis is performed.
5 - We submit a preliminary outline of the business succession plan.
6 - We deliver the first draft of the business succession plan.
7 - We discuss the plan thoroughly with yourself, your accountant and your lawyer.
8 - The plan is adjusted and finalized.
9 - We submit a detailed step-by-step action list for the implementation of the plan.
10 - Finally, we assist you, your accountant and your lawyer with the implementation.
The Cost: There is no cost or obligation for the initial discussions. If there is a fit and you wish to proceed, the fee is agreed upon. On average, it is around $2,500.
The Time: The average engagement takes three to six months. Throughout the process we need approximately eight to 12 hours of your time in total, and we work with your advisers.
The Outcome: A custom business succession plan for you and your business.
We will help you get started. To learn more about this and other strategies, please feel free to contact Shawn Ryan, CFP, TEP, Senior Insurance & Estate Specialist at email@example.com or call 613-236-9101.