Help Clients Plan for the Successful Transfer of Their Businesses
As the first cohort of baby boomers nears retirement age, attorneys are increasingly being sought after to assist clients with ownership succession plans. Are you prepared for the challenges of assisting clients with their ownership succession planning? Will you be able to help your clients maximize the value they receive from their business and help them protect their newly realized wealth? Your clients will need your assistance determining whether they should sell to insiders (family or employees), outsiders (strategic or financial buyers) or to an employee stock ownership plan (ESOP). Our experienced faculty will help you advise your clients regarding the opportunities and the traps associated with succession planning. Register today!
- Be prepared to confidently guide your clients through the ownership succession plan option that will best meet their goals.
- Review best practices for establishing an effective ownership succession plan.
- Identify which valuation approach is best for your clients' specific situation.
- Explain the key legal and tax aspects of each exit plan option.
- Recognize the impact a valuation discount can have on a lifetime business succession plan.
- Know how to reduce or defer the payment of estate taxes on newly transferred businesses.
- Confidently state the tax incentives associated with Employee Share Ownership Plans (ESOPs).
- Overview of the Ownership Succession Planning Process and Advisor's Roles
9:00 - 9:45, James S. Aussem
- Succession Planning Priorities
- Steps to Establish an Ownership Succession Plan
- Set Plan Objectives
- Determine the Selling Price of the Business
- Manage the Value
- Decide Whether to Sell via ESOP or Outsider
- Develop the Owner's Estate Plan
- Who Can Value the Company?
- Valuing Closely Held Companies
9:45 - 11:00, Michael J. Zeleznik
- General Approaches to Valuing a Closely Held Company
- Asset Approach
- Income Approach
- Market Approach
- Financial Analysis of Stock Value
- Trend Analysis
- Ratio Analysis
- Future Business Plans and Expectations
- Capitalization and Ownership Interest in the Company
- Economic and Industry Conditions
- Valuation Adjustments
- Discount for Lack of Control
- Discount for Lack of Marketability
- Restricted Stock Studies
- History of Restricted Stock
- Legal and Tax Considerations When Selling a Company
11:15 - 12:30, James M. Mackey
- Process of Selling to an Unrelated Third Party
- Equity Sale vs. Asset Sale
- Legal Considerations
- Federal Tax Considerations
- State Tax Considerations
- Mitigation of Tax Consequences
- Allocation of Purchase Price
- Installment Sales
- Contingent Considerations and Earn Outs
- Maintaining Equity Positions and Tax Deferral
- Negotiating Key Transaction Terms
- Purchase Agreement
- Purchase Price Adjustments
- Representations and Warranties
- Indemnifications and Escrows
- Business Succession Planning Using Lifetime Transfers
1:30 - 2:45, Gary A. Zwick
- Deferred Compensation
- Who Should Own Company vs. Who Should Manage Company
- Stock Bonus Plans
- Utilization of the Gift Tax Annual Exclusion Amount
- Use of Grantor Retained Annuity Trusts
- Sale to Intentionally-Defective Grantor Trust
- Impact of Valuation Discounts on Lifetime Business Succession Planning
- Estate and Gift Tax Planning for Business Owners
2:45 - 3:30, James S. Aussem
- Testamentary Techniques and Business Succession Planning
- Outright Bequests
- Bequests in Trust
- Ways to Equalize Values Among Children
- Buy-Sell Agreements
- Reducing and Deferring the Payment of Estate Taxes
- ESOPs in Ownership Succession Planning
3:45 - 4:30, James S. Aussem
- Introducing the ESOP as an Ownership Succession Planning Strategy
- What is an ESOP?
- How Does an ESOP Work?
- What are the ESOP Tax Incentives?
- ESOP Compared to Other Strategies
- When to Sell to an Insider vs. an Outsider
- The Future of ESOPs
This intermediate level seminar is designed for:
- CPAs and Accountants
- Financial Planners
- Investment Advisors
- Insurance Professionals