Krumm & Associates
Certified Public Accountants & Consultants

Succession Planning

Approximately 90 percent of the businesses in the United States are family owned. Unfortunately studies show that two-thirds of closely held family businesses fail to survive into the second generation. Although owners often spend a lifetime building their businesses, many neglect to plan for its eventual transfer to their successors. This failure to adequately plan for management and ownership succession is the leading contributor to the low survival rate. 

Many planners equate succession planning with estate planning. Others believe it is another form of strategic planning. Neither view is entirely accurate, although estate planning and strategic planning are integral parts of any business succession plan. Succession planning is much broader, it is the development of a strategy for the transfer of the ownership, management, and philosophical responsibility of the business, typically from the parents to their children. 

For Succession Planning assistance, contact Krumm & Associates CPA's & Consultants, CPA's & Consultants.