Your business is your largest investment. Over the years, it has helped you build a healthy portfolio and generate wealth. If you are envisioning retirement, you may be wondering how to make a smooth transition that will keep your business on solid ground and help you meet your next set of financial goals. The financial professionals at DZH Phillips will help you develop a plan that will benefit you and your family, and secure the financial future of your business.
Our unique seven-step Exit & Succession Planning process generates strategies for creating wealth while safeguarding your business for those who come after you. Whether you’re ready to move on or you’re just beginning to think about retirement, DZH Phillips will guide you through the process of evaluating your current and future situation and developing a plan that will address your concerns. The entire process lasts from six to 36 months, depending on your readiness to execute the planned succession. More. (links to exit & succession process)
Family businesses have their own challenges, and appropriate succession planning can be one of them. According to the Family Business Institute, 97% of family businesses do not survive past the third generation. If you’re hoping to defy these odds, you’ll benefit from the assistance of professionals who can help you craft a succession plan that negotiates the complex dynamics of a family business and safeguards the integrity of both the family and company that you’ve worked so hard to build. DZH Phillips has the experience and resources to help family businesses structure succession plans that provide timely, trusted leadership transitions and careful strategies for preservation and transfer of wealth.
An Employee Stock Ownership Plan (ESOP) is an increasingly common strategy that many business owners use to structure a succession plan, especially in situations where there is no market to sell their company and/or no interested or qualified family members who can assume leadership. An ESOP is a defined contribution retirement plan, similar in nature to a profit-sharing plan, in which a company makes annual contributions of stock that are allocated to employee accounts. ESOPs are ideal for businesses that have a loyal and productive workforce, as they effectively facilitate employee ownership of the company.
The establishment of an ESOP provides certain attractive benefits to business owners, including tax advantages, enhanced retirement and estate planning options, and the ability to retain primary management control of the business.
DZH Phillips is well-versed in the implementation and management of ESOPs. We work with clients to develop and structure an appropriate plan, guide the implementation, and perform ongoing monitoring and reporting as required by the IRS.