2. Agenda for today
Outlining Succession Planning Basics
Identifying Key Players in the Process
Setting Goals for Achievement
Exploring Tax Opportunities
9. Succession Planning – Who is Impacted?
Business owners
Large business executives
Vendors and other stakeholders
10. Succession Planning – Who is Impacted?
Business owners
Large business executives
Vendors and other stakeholders
Sons and daughters
11. Succession Planning – What?
Direct involvement from executive leadership
Systemized accountability for development of
future leaders
Early identification of leadership candidates
Broad internal commitment to self-improvement
12. Succession Planning – Why?
Get skills in place
Make appropriate investment decisions
Maximize company value for transition
Minimize tax burden arising out of transition
16. Effectiveness of Succession Planning
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ArbitraryNumbers
Time
Graphic Representation of the Options / Urgency Paradigm
Options Urgency Effectiveness
17. Key Players -
Who Is Involved?
Owners
Key operational leaders
Invested employees
18. Key Players -
Who is Involved?
Owners
Key operational leaders
Invested employees
Human resources
Outside advisors
19. Goals for Transition
Role definition
Process owners
Network of strategic advisors
Jobs skills listing
Expanded candidate list
Development plans
Investment strategies
20. Who is doing what?
Planning future strategy
Recruiting
Training program design
Coaching and mentoring
Developing investment and structure
Setting cultural tenor and atmosphere
Designing compensation and incentive plans
Promoting future vision
Implementing non-financial initiative
Recognition and performance monitoring
21. Title Industry Example
Consolidation – TitleOne Corporation
Focus on the big picture – TitleOne
Turn the focus inward
Buyer’s bargain
24. Transition – Tax Opportunities
Small Businesses
Transfer of ownership and responsibility to new generation of
owners
Long-range cash flow considerations for retiring executives /
owners, and the resulting tax impact
Protection of closely held nature of the business
Large Businesses
Incentive compensation opportunities and potential pitfalls
Non-compete agreement consideration and valuation
25. Transition – Tax Opportunities
Organizational structure could impact options
Pass-through vs. corporate structures
With enough time, you can plan around structure issues
Cash flow opportunities
Gain deferral could be available to seller
Eases cash burden on buyer
Don’t stumble on “Hot Asset” rules
Gifting and other estate planning strategies
26. Transition – Tax Challenges
Valuation of your business – your personal value vs. your business’s
value
Organizational structure could impact options – especially in the
short-term
Family dynamics can influence decisions – and those dynamics can
change
Future owners and future operational leaders might be different
people
27. Summary
Get a plan in place
Align your plan to your business
Identify successors
Develop your alliance network
28.
29. PERSHING YOAKLEY & ASSOCIATES, P.C.
800.270.9629 | www.pyapc.com
S. Mark Brumbelow,
Senior Manager
(800) 270-9629
mbrumbelow@pyapc.com
Editor's Notes
$10T would be over 1,680 containers full of $100 bills, and would weigh approximately 220,462,000 lbs.
Who else?
FORMATTING - I would like to be able to introduce these point one at a time.
Elliott Carver in “Tomorrow Never Dies”.
Formatting - I would like to be able to introduce these point one at a time.
Formatting - I would like to be able to introduce these point one at a time.
Formatting - I would like to be able to introduce these point one at a time.
Formatting – is there any way to have this slide be click – empty graph – click – options – click – urgency – click – effectiveness?
These are the more obvious players in the process…
…but if we expand the scope…
Title Industry Example Coming Up.
FORMATTING - I would like to be able to introduce these point one at a time.
What does the deal look like for TitleOne corporate? What about its owners and stakeholders? What does it look like from the TRG perspective? SEE NEXT SLIDE