Business Succession Planning
Prasad & Company LLP provides expert estate and business succession planning. If you are going through a transfer of business ownership, personal wealth, or just planning for the future, the firm has a high level of experience and knowledge to assist in creating a smooth transition.
Prasad & Company LLP helps clients face the challenges encountered during these processes. The firm will guide clients in reaching their financial and business transition goals via a plethora of different services. These services can include exit strategy planning, business valuations, and financial and retirement planning. The firm can professionally represent either you or your business as an appointed trustee and/or executor.
Our Benefits
From defining an exit strategy and building a long-term financial or retirement plan to determining the valuation of your business, our team of professionals help you:
- Address your specific priorities – both financial and non-financial
- Maintain the business’s value through the change in ownership
- Reduce estate and income taxes payable
- Preserve family bonds and relationships
We professionally represent either you or the business or work in the capacity of an appointed trustee and/or executor.
Prasad & Company LLP understands that most of your time is spent on building and operating the business as a business owner. As such, the concept of succession planning is often not seen as a priority. However, effective succession planning requires a structured approach to protect the financial well-being of your family, as well as your brand with customers, suppliers, and employees.
It is here where our team can provide expert estate and business succession planning to help you transition to your next chapter in life. Whether you are transferring business ownership, personal wealth, or just planning your future, the firm has deep experience and knowledge to help you navigate the challenges encountered at each step of the process.
What is a business succession planning strategy?
The business succession planning strategy lays out how the transfer of business ownership will occur once the current owner transitions out of their management role in the business. These strategies are essentially designed to support a seamless change of ownership without material disruption to customers or operations while optimizing the financial security and welfare of the current owner and their family.
Why do you need business succession planning?
While every business stands to benefit from precise succession planning, small businesses can find the practice particularly useful to identify and develop the talent required to take the business forward. In addition to that, there are several other reasons to build business succession planning strategies proactively:
- The lack of a succession plan can contribute to financial underperformance and sub-par business results in the immediate aftermath of the transition as the new management team undertake the learning curve.
- Small business owners often have a substantial portion of their net worth tied directly to the business they run. Therefore, a robust succession plan can maximize asset valuations and mitigate risks to the capital that current owners are banking on for their retirement needs.
- Sudden death or disability that leaves the owner (or their business partner) incapable of operating the business can raise a serious question about the viability of the business’s future. A succession plan is the first step to managing the ‘key person’ risk that small businesses may face.
The importance of succession planning in a family business is heightened further. If a family member is going to be taking over a business, the business succession plan will need to be aligned with the estate plan. There may also be tax deferral opportunities that can be capitalized on. These considerations add further complexities when dealing with family business succession planning.
Knowledge Base
Succession and estate planning ensure your business and personal wealth transition smoothly.
When coordinated, they:
- Protect family interests;
- Preserve business value;
- Reduce tax exposure;
- Maintain continuity.
For affluent owners, this coordination is essential to protecting legacy.
Every owner exits eventually – either upon sale of a business or their inevitable passing.
Without planning, value can erode and families face stress. With planning, transitions are orderly and tax‑efficient.
Succession planning protects what you built.
Key components include valuation, successor development, tax planning, and contingency design.
A strong plan balances financial, operational, and family considerations.
Deemed disposition at death can trigger large tax bills.
Strategies like trusts, freezes, and exemptions reduce this burden and protect heirs.
Common strategies include spousal rollovers, LCGE use, insurance planning, and trusts.
Early planning increases effectiveness.
It caps current value and shifts growth to successors, offering predictability and tax control.
The LCGE can dramatically reduce tax on transition when properly planned.
They allow family transfers to receive fair tax treatment when genuine ownership change occurs. These transfer can be complex and require expert analysis and planning in order to occur on a tax-deferred basis, and may not apply to every scenario.
Share sales often favour sellers; asset sales often favour buyers. Structure affects tax and price.
Real estate can create large tax exposure. Proper structuring and insurance planning help manage it.
Insurance provides liquidity and protects businesses from forced sales.
Capital gains, exemptions, and family rules all affect outcomes. Tailored advice is critical.
Ideally 5–10 years before exit to maximize flexibility and tax efficiency.
Excessive taxes, disruption, and conflict often follow. Planning prevents all of these issues.
We design succession strategies that protect value, reduce tax, and support family harmony.
Our team guides owners through each step so transitions happen smoothly and efficiently.
Disclaimer: Tax rules are complex and change frequently. Advice should always be tailored to your situation.
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