Succession Planning: Your Roadmap for Success Presented by (Name, CPA) Member, The Ohio Society of CPAs 9/14/2015 1

Succession Planning A documented plan for partners, heirs and successors to follow in the event of a death, disability or retirement If the owner unexpectedly passes away or is incapacitated, what happens to the business? No plan means risking monetary losses and possibly losing the business itself. 9/14/20152

Planning for Sudden Absences Succession plans can also be tailored to handle unexpected short and long term absences. Examples include vacation, unexpected personal illness or an illness in the family. 9/14/20153

Five Steps of Succession Planning 1.Assemble a team of relevant professionals: CPA Lawyer Estate planning experts 9/14/20154

Five Steps of Succession Planning 2. Identify and prepare successor(s) Recruit Develop Select Announce 9/14/20155

Five Steps of Succession Planning 3. Document plans Include plans and documentation for: Distribution of business stock and other assets Debt retirement schedules Life insurance policies Division of responsibilities among successors Buy-sell agreements between partners and heirs o Consider establishing a formula for calculating the value of the business 9/14/20156

Five Steps of Succession Planning Capital considerations Emergency capital Strategies for mitigating estate and gift taxes 9/14/20157

Five Steps of Succession Planning 4. Share with relevant people Lawyer CPA Key employees Family members 9/14/20158

Five Steps of Succession Planning 5. Review regularly As the business and business environment changes, make sure the succession plan is updated accordingly. The plan should be flexible enough to be updated easily. 9/14/20159

For Further Information: For further information or assistance with succession plans, please contact me: –Name –Company –Address – –Phone 9/14/201510