Time is the one thing that business owners can control. Establish retirement plans and commit to maximum funding. The performance and costs of the plan can have a significant impact on future values. Therefore, carefully consider appropriate investment advisory services. Retirement plans, which grow without the burden of taxes, offer an excellent source of creditor-protected funding for transition plans.
Insurance is the best source for funding transitions which occur because of death.
Gifts are seldom recommended. Bank financing, even if guaranteed by the firm, assures that the stock is something more than a valuable employee reward. Allow for identified future owners to have access to financial information. While an appraisal is an interesting snapshot in time, it may not be the best indicator of at what price stock should be bought and sold in internal transactions. Banks are often useful in assisting in the financing of stock purchases by the younger owners.