BUSINESS SUCCESSION
For any business owner proper planning of one’s affairs involves some type of business succession plan pertaining to one’s closely-held business upon the death, disability, or retirement of the business owner. A variety of business succession techniques and approaches can be tailored to most business owners’ individual situations. Buy-sell agreements in the form of stock redemption plans or cross-purchase agreements can be used to provide for the orderly transition of business interests when one retires, becomes disabled, or dies.
When a business interest is transferred, valuation of that interest may become a key issue. Valuation questions arise when business interests are transferred and also when a business owner dies and the value of the business is subject to the federal estate tax being levied on the decedent’s estate.
Tex McKinnon has a wealth of experience in formulating business succession agreements for business owners and in assisting business owners and fiduciaries in valuation of closely-held businesses.