Business Succession Planning Expert exit strategies for maximizing business efficiency
Exit Strategies We can help you build a business that accumulates maximum after-tax value. As a firm staffed with seasoned business succession planners, we have solutions to the issues that most frustrate business succession planning. We can typically find ways to design business transition plans and generate tax savings many times more than the costs.
The Problem Only 30% of businesses make it to generation two and a mere 3% still generate profits in generation three. Given the dismal success of family businesses over the long term, it is no wonder that 65% of family wealth is lost by the second generation and 90% by the third generation. By the third generation, more than 90% of estate value is lost. Even if financial wealth is not lost, the vision is frequently lost. Family businesses without an effective wealth and management transfer process typically have heirs working at cross purposes. Disruptive changes of leadership are common. Studies show that values are not transferred to the next generation, and conflicts regarding succession planning cause businesses to fail.
The Solution We help every business owner crystallize a clear vision and mission. Once completed we help the business incorporate the mission into its daily operations. We also analyze and monitor after-tax cash flow. We can illustrate dozens of advanced tax planning technologies that give business owners a competitive edge. Success in business planning requires an honest assessment of the business’ current situation. Our vast experience in this area means that that we can help managers of every business identify the strengths and weaknesses of the business in the following key areas:
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Business Strategic Vision and Mission
Do business leaders and managers communicate a sufficiently clear vision? Successful leaders establish and articulate a clear vision, which must remain steady and compelling even if the mission changes. Our assessment of the organizational vision reveals much about the health of the organization.
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Personal Core Values Planning The business achieves greatest success when leaders and managers pursue their passions, fulfill their callings, and experience success in harmony with their personal core values. We can help the business stay faithful to its corporate vision while coalescing personal core values into a statement of business core values.
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Key Team Members Jim Collins wrote about the importance of “getting the right people on the bus� and in the right seats. We help clarify how the roles and goals of staff members lead to completion of workflows with growing cash flows, all with simultaneous loose-tight controls. Alignment of roles, goals, controls, workflows, and cash flows helps businesses develop the right incentives (payrolls) to foster maximum commitment and teamwork.
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Key Advisers Companies can often keep fixed costs lowest and profit margins highest if they out-source advisory services. All advisers must understand the corporate vision and values as well as the key performance indicators (“KPI”) used to monitor work flows and cash flows. Our process helps the business evaluate the effectiveness of each advisory team members.
Value Enhancement
In the competitive global economy, each business must know and leverage its core strengths in areas where the greatest opportunities exist. We help the business to clarify how it can “leverage the best and ditch the rest.”
Risk Management Preserving the value requires identification and management of many risks. We evaluate the effectiveness of methods used to manage risks related to products liability, loss of key team member, regulatory and legal matters, intellectual property protection, and natural disasters.
Financial Management Successful business owners understand the extreme importance of monitoring and projecting cash flow. Similarly, we examine cash flows related to a broad array of business entities and planning instruments. We also have the most sophisticated technology available to integrate cash flow projections and to model long-term impacts on income statements and balance sheets. We use illustrations to show how business cash flows impact current and wealth transfers to all business stakeholders. A DIVISION OF BOHM MATSEN, LLP
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Tax Planning Planning in the 21st century must take into account a broad array of income, capital gains, AMT, estate, gift, GST, property, and other taxes. Cash flow and wealth transfer projections will probably not be useful unless you actively involve a CPA and/or tax lawyer in developing realistic projections of after-tax cash flows. The key is to integrate investment optimization with tax optimization to help optimize wealth across time.
Exit Planning
Monetizing the equity in a business requires our careful development and execution of next actions related to shareholder value creation, exit date projections, choice of gift and sales techniques, preparation of the next owners and managers, selection of financing vehicles, funding of buy-sell plan, appropriate transfer of management and control, maintenance of project management timelines, and management of key performance indicators. We have vast experience and an understanding of these critical issues.
Legacy Planning Statistics shows that most heirs will lose their inheritance much like most lottery winners squander their wealth in a short period of time. Successful legacy planning requires that heirs receive an emotional and spiritual inheritance before they receive a financial inheritance. Helping business owners transfer their values before they transfer the value of what they own is a critical component to the success of the transition.
Conclusion As a result of our extensive experience and expertise, Matsen Voorhees Mintz LLP is uniquely positioned to create and implement comprehensive strategies that coordinate the needs of the family and business with estate tax, income tax, and asset protection planning. We can implement even the most complex and sophisticated business succession strategies.
PARTNERS Jeff Matsen
Tim Voorhees
JRMATSEN.COM
TIMVOORHEES.COM
As one of the top estate planning attorneys in the country, Jeff has spent his 45-year career providing his clients with the highest level of legal service and has recently authored a book in his area of expertise, The Ladder of Success: An Asset Protection Planning Primer.
While earning his JD and MBA degrees, Tim emphasized business and corporate planning. He helps clients transfer their businesses tax-efficiently using techniques to lower income and estate taxes while increasing after-tax retirement and wealth transfer amounts.
695 Town Center Drive 7th Floor Costa Mesa, CA 92626 Phone: 800-447-7090 or 714-384-6580 Fax: 866-447-7090 www.MVMLawyers.com Info@MVMLawyers.com
Jonathan Mintz
JONATHANAMINTZ.COM
As the newest partner at Matsen Voorhees Mintz LLP, Jonathan has nearly 25 years of experience as an estate planning attorney. He has extensive experience in designing and implementing effective estate and succession plans for business owners and their families.