Through Succession Planning Preserving Value Through Succession Planning by Paul M. Lurie Stock in a closely-held engineering firm often represents a disproportionately large portion of an owner's investment portfolio. The firm must also eventually consider the question of future management of the organization. For most structural engineering firms, optimization of this situation can be achieved for both owners and employees with an internal transition plan rather than an outsider sale. Such a plan allows older engineers to have cash for retirement while providing a career path for rising talent. However, internal plans require planning many years in advance of any contemplated changes in management control of the organization.
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.