Succession Planning One of the most challenging aspects of business ownership is developing an exit strategy, whether you are a family run business, a privately held business or a Fortune 1000 company. Failure to properly plan for a smooth transition can result in monetary losses and even the loss of the business itself.There are three scenarios:sale to family members,sale to an outside entity, andsale to employees.One has to consider what the sale beneficiaries want and what the surviving owners want. Beneficiaries want:fair value for the business,prompt settlement of the estate,fix the value for estate tax purposes, andeliminate the claims of any creditors.Surviving owners want:to pay fair value for the business,prompt transfer,full control with no interference from heirs,continued lines of credit,retain customers, employees.A properly structured, appropriately funded business continuation plan can help assure the orderly transfer of a business for a mutually agreeable sales price that is binding on the IRS for federal estate tax purposes. If you want to increase your odds of a successful transition, you need to structure an arrangement to maximize the tax and financial benefits to you and your family. Whether you plan to retain or sell your business at death, disability or retirement, you must begin months, if not years before, to plan for business succession to ensure a smooth, financially sound strategy with which you would be comfortable.Booth Financial Associates can help you answer many unanswered questions that you may have and guide you through a smooth, and financially sound business transition. We will help you determine your goals, as well as the future ownership goals, who the new owners should be, evaluate funding sources and review your personal and financial goals after the transition. This requires, not only business succession planning, but it must be combined with estate planning, personal planning, and business planning to ensure the employees and the business continues to be successful.