TAKE CHARGE

TRANSITION PLANNING

Commercial Business

Success Stories
Color Block
Frank O'Shea, CPA

A Retiring Owner Gained Confidence He Would Have Sufficient Liquidity and a Smooth Succession


Client Description

A family business transfers ownership to the next generation with a plan that benefits both father and son.

Problem

A business owner wished to transfer the family business to his son over the next five years. He wanted to generate sufficient liquidity to meet his post-exit needs, without placing a financial burden on the business.

Solution

BerryDunn’s experts worked with our client to:

  • Develop cash flow and tax projections illustrating the exiting owner’s needs
  • Compare the impact on the business of alternative strategies
  • Prepare an estimate of the value of the business and develop a transfer pricing model
  • Modify the retirement programs to enhance the exiting owner’s current tax deferred savings

Outcome

The retiring owner will receive sufficient liquidity to meet his needs after exiting the business, and ownership of the business will be transferred on a five-year schedule.