Transition
Planning

Planning Ahead

Transition planning is something that could be considered inevitable for a successful business. For some people, this thought might bring anxiety or fear. But those that embrace transition while viewing it as a sign of business success and a job well done will have an amazing opportunity ahead of them.

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It is sometimes apparent which businesses have a long-term plan, and which ones don’t. Characteristics of a business that has a long-term plan includes:

  • Innovation with a drive for constant improvement
  • Improved production & profitability
  • The ability for expansion & growth due to their understanding of future obligations
  • Successors investing the time into personal & professional development, because they know what is, and will be asked of them
  • A senior generation who is comfortable with the migration of management and leadership because they welcome successor development and have developed their long-term personal plan

A business owner who is considering a transition plan has certainly realized success throughout their career.

To be successful, they had to overcome unforeseen challenges, grow through tough times, and find a path to sustainability. But, succession planning is something that can seem like a daunting task, simply because it is something that you have not done before. When using a proven process though, it becomes reality that this task that is sometimes intimidating task is something that can be achieved.

Just like your business, each transition plan is unique. One transition plan might require different services than another.

This is why Ascent hasdeveloped the following programs with qualified team members to compliment a transition plan:

Personal  Financial Planning

  • Investment Management
  • Insurance Planning
  • Mediations & Conflict Resolution
  • Estate Planning
  • Lender packages & proposals
  • Financial Reporting & CFO services

Starting the Journey

There is not a perfect time to start a transition plan, every business is unique. It is often said though, that those who start early improve the odds. Often times it can take years to develop a successor to be ready for management, or for the business to reach the targeted profit margin to complete a transition plan. These unknowns, if delayed, can

become more challenging the longer they are ignored. The stakeholders who have designed a high quality transition plan will be able to make the following statements:

  • We have identified the successors of our business.

  • We have the right people for this business to complete a successful transition. The successor(s) have the skillsets required, or will be acquiring these skillsets.

  • We have identified when the senior generation wishes to transition roles & responsibilities to the successor(s). The senior generation clearly understands their important role through this transition, and the successors understand what will be expected of them.

  • The senior generation have clearly stated what they will be requiring financially from the business. They understand their income sources and have a plan that will meet their living standards.

  • The business has a profit model that will support the senior generation’s income requirements while providing opportunity to the successor.
  • The successors understand the long-term potential of the business and have taken the proper steps to reduce risk where possible.

  • The senior generation & successor generation have discussed living arrangements, and a plan is in place to allow all parties to end up living where appropriate.

  • The senior generation understands when they could be released from financial liability of the business.

  • The senior generation & successor generation have a proactive estate plan that compliments the business’ long-term plan while meeting personal & family goals. Consideration has been given to the senior generation’s children not involved in the transition plan. Steps have been taken to keep the business intact

  • There are provisions to the business & the succession plan in the event that there is an untimely death, disability, or early departure from the business.

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