What is Succession Planning?
Succession planning is a preemptive process for businesses to recruit and develop employees to fulfill key leadership roles within the business. Succession planning has become a much debated topic as the Baby Boomer generation retires with a large talent gap among younger employees. Superior succession planning involves hiring employees with talent and potential, developing their knowledge and skills that prepare them for advancement and promotion at the company. The process involves knowledge transfer and an engaged leadership. Succession planning ensures the long-term security and survival of the business.
Succession Planning Requires Clear Objectives
Effective succession planning requires goals and clear objectives that engage the current leadership of the business with future potential leaders of the business. Development experiences and career expectations are critical to retention and commitment of potential leaders. Clear leadership succession provides for continuity in the business, especially in the event of an unexpected exit of a key leader of the business.
Succession Plan – Business Exit Planning
Every business, large or small, needs to have an exit strategy. Business Exit Planning clearly defines the objectives and strategies implemented by the business for successful succession. The death of a key leader in the business can quickly destroy the dynamic of a small business. The business exit plan should include contingencies for illness, death, initial public offering (IPO), sale of the business, management buyout, passing the firm to inheritors, or even bankruptcy. The exit plan should account for applicable estate taxes, capital gains taxes or other taxes to minimize risk to the company.
Las Vegas Business Planning
If you own a business in Henderson or the greater Las Vegas area, Smith & Shapiro will help develop and install a succession plan in your company, family business, firm, or practice. As an attorney and CPA* who is versed in corporate mergers and acquisitions, attorney Gregory S. Smith knows how to structure your business and develop a succession plan that will safeguard your assets now and for the future.
Contact Smith & Shapiro at our Henderson or Las Vegas location, 8:00am – 5:00pm, Monday – Friday to schedule an appointment. (702) 318-5033