Building a Professional Team for Business Continuity and Exit Planning

Succession planning for a family business involves complex financial, legal, and operational decisions, requiring expert guidance to help ensure a smooth transfer of leadership and ownership. Engaging a professional team early in the process can help you navigate sensitive family dynamics, identify strategies to best preserve your legacy, and avoid costly mistakes. With the support of a skilled team, including financial advisors, attorneys, and tax experts, you can create a well-structured plan that addresses key concerns and ensures all parties are aligned and informed. Learn more about assembling a professional team to help you manage potential challenges and ensure your company is well-positioned for the future.

Building Your Succession Planning Team

Beyond the legal and financial considerations, transitioning a family business requires guidance through the practical and emotional aspects of the process. Here are key experts you should consider and the roles they play:

• Financial Advisors: Financial advisors experienced in succession planning can help align your business and personal assets to your financial goals by determining how much retirement income you need to support your desired lifestyle, proactively identifying and mitigating risks, and diversifying assets to protect and preserve your personal wealth. At Quantum, we follow a goal-matching model to ensure that your assets are properly matched to all your goals to mitigate your biggest financial risk: not meeting your financial goals.

• Certified Exit Planning Advisor (CEPA): Advisors with a CEPA designation bring specialized expertise in managing the personal, business, and financial aspects of business exits. Quantum’s CFO and Advisor, David DeWolf, holds a CEPA designation, guiding business owners through a personalized exit strategy, such as planning for retirement and acting as a central coordinator with other professionals (accountants, lawyers, and bankers). 

• Attorneys: Lawyers specializing in estate planning update important estate planning documents, such as wills and trusts, and ensure you comply with current regulations. The business transaction attorney ensures that all legal aspects of the exit process are handled properly, including due diligence, drafting contracts, and structuring agreements to protect the seller’s interests. They also address compliance, regulatory issues, and risk mitigation, ensuring a smooth, legally sound transition.

• Tax Professionals: A CPA familiar with business tax planning can help identify and implement tax-efficient strategies before a sale, such as managing capital gains and estate taxes. A tax expert works closely with other advisors to optimize the tax implications of the sale structure and any associated ownership transfers, preserving as much value as possible for the business owner.

• Business Valuation Experts: A business valuation expert can review your financial records to provide an objective, data-driven valuation of your business.  This analysis can help to avoid undervaluing your business and identify critical factors to maximize value over time. Obtaining an annual valuation can be a good strategy even if you  are not anticipating a sale outside of the family. 

• Corporate Banker: Bankers can play a vital role in providing industry insights, and facilitating the exit financing for a business owner.  Bankers can help in evaluating and determining the appropriate financing option, which can be an important aspect of the overall deal structure.  Bankers can also leverage their network to help identify potential strategic buyers.    

• Professional Counselors or Mediators: Counselors and mediators can help key players in your business address sensitive family conflicts while facilitating open communication between all family members. You may want to bring someone like this into your conversations with your financial advisor or other professionals if you feel like conversations are being derailed or are unproductive. A third-party mediator can help keep everyone on topic and work through conflict to reach a resolution. 

Secure Your Legacy with the Right Team

From legal guidance to tax strategies, each expert plays a crucial role in preserving your family business’s legacy and aligning your long-term goals. 

At Quantum, we are uniquely equipped to guide you through your exit, ensuring the continuity of your business and your peace of mind. Whether or not you’ve considered a transition, hear from Dave about why now is the best time to think about exit planning for your family business. 

Contact us today to learn more about how we can be part of your professional succession planning team and help secure your family business for generations to come.

DISCLOSURE: Quantum Financial Advisors, LLC is an SEC registered investment adviser. SEC registration does not constitute an endorsement of Quantum Financial Advisors, LLC by the SEC nor does it indicate that Quantum Financial Advisors, LLC has attained a particular level of skill or ability. This material prepared by Quantum Financial Advisors, LLC is for informational purposes only and is accurate as of the date it was prepared. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Advisory services are only offered to clients or prospective clients where Quantum Financial Advisors, LLC and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Quantum Financial Advisors, LLC unless a client service agreement is in place. This material is not intended to serve as personalized tax, legal, and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Quantum Financial Advisors, LLC is not an accounting or legal firm. Please consult with your tax and/or legal professional regarding your specific tax and/or legal situation when determining if any of the mentioned strategies are right for you.

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