Single Store Owner

OCT 2016

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58 / Convenience Store News for the Single Store Owner / OCTOBER 2016 FROM THE EXPERTS opportunities. Is your planning coordinated with the estate, financial plan, shareholder agreements and overall family wealth plan? 7. Legislative Risk Legislation may change both federal and state estate and other tax rules. Valuable business trans- fer and estate planning tools and techniques avail- able today may be weakened or no longer available. SUCCESSION IS A PROCESS The risks and consequences of not preparing for the eventual transition of your company can be severe. However, a successful continuation plan depends greatly on your mental perspective and being proactive to lead the process. Think about it as playing to win the game. It is a process and entry point for creating a new direc- tion for the future of the company; not an end, but a beginning. This one decision to get started will give you, and every stakeholder, the time to prepare for contingen- cies, identify successors and explore alternatives for growth, acquisitions, transfer within the family, man- agement or selling. Most importantly, getting started on succession planning will reward you and everyone who depends on you with a sense of security. SSO James J. Kirlin is a financial advisor for family and privately held businesses. He has more than 25 years of experience in executing business transition and legacy planning strategies that focus on optimiz- ing family wealth and reducing the risks associated with the ownership of a middle-market business. He advises business owners on a wide range of topics in- cluding exit strategies, succession, legacy and wealth management planning. Editor's note: The opinions expressed in this article are the author's and do not necessarily reflect the views of Convenience Convenience Store News for the Single Store Owner. Store Convenience Store News for the Single Store Owner. News Convenience Store News for the Single Store Owner. for Convenience Store News for the Single Store Owner. the Convenience Store News for the Single Store Owner. Single Convenience Store News for the Single Store Owner. Store Convenience Store News for the Single Store Owner. Owner Convenience Store News for the Single Store Owner. 3. Financial, Mental & ntal Financial, Mental & & Business Readiness iness Business Readiness Succession must address ownership, ddress Succession must address ownership, ownership, management, leadership, financial adership, management, leadership, financial financial and culture matters. Along with tters. and culture matters. Along with Along with assessing the strengths and weak- rengths assessing the strengths and weak- and weak- nesses of the company, it is impor- mpany, nesses of the company, it is impor- it is impor- tant to quantify your emotional fy tant to quantify your emotional your emotional and financial dependence on l and financial dependence on dependence on the business. Can the business s. the business. Can the business Can the business operate without you? Are you thout operate without you? Are you you? Are you dependent on the business for t dependent on the business for on the business for income, financial or emo- nancial income, financial or emo- or emo- tional needs? Ask yourself: Is ds? tional needs? Ask yourself: Is Ask yourself: Is my business OK? Is my family ss my business OK? Is my family OK? Is my family OK? OK? Am I OK? Am OK? Am I OK? I OK? Am I OK? OK? OK? Am I OK? 4. Protecting the Value Do you know what your business is really worth? The need to get money out of the business for retirement or preserving family wealth may conflict with the financial structure and ability of the company to continue. Acceptable transfer value scenarios for lifetime and death, lending, retirement, gifting, estate tax and shareholder agreements must be evaluated. 5. Leadership Development A critical value driver for every business and succession plan is the leadership team. Do you have a plan to develop leaders? The key is to retain key executive talent and align their goals and com- pensation with the value drivers of your company. Emotional and financial issues that can create clashes among active and inactive owners or succes- sors, or those who are not equipped or capable of operating the business, also need to be addressed. 6. Improve Business, Financial & Estate Planning Strategies and documents may be outdated, with different plans created over many years, resulting in fragmented estate, shareholder and ownership ownership planning. This can be costly in missed planning ownership planning. This can be costly in missed This ownership planning. This can be costly in missed can ownership planning. This can be costly in missed be ownership planning. This can be costly in missed costly ownership planning. This can be costly in missed in ownership planning. This can be costly in missed missed ownership planning. This can be costly in missed

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