Business Planning

Succession, Selling and Exit Strategies

We understand business planning is not that different from personal financial planning – it is the daily balancing act of investments and risk, and planning for the future. It is about setting goals, employing the right strategies and tools to achieve them, and ultimately realizing the value that you’ve created.

At First Capital Advisors Group, we adhere to five steps of discovery in order to prepare a career and business strategy for our clients.

1) Objectives

Determine your objectives for the business (what do you want to accomplish, where do you see the company going)?

For Family Businesses:

  • Is the business remaining in the family?
  • Is the business to pass to family members and non-family members alike?


  • When (at what age) do you plan to retire?
  • At what point do you plan to give up control?
  • How will business be transitioned to the next generation? Will it be a sale, a gift or a combination of the two?
2) Financial Needs

What are your financial needs (including desired level of retirement income)?

  • Are you “cash poor” but rich on paper?
  • What are your retirement needs?
  • Do you plan to increase your standard of living upon retirement?
  • Do you have the necessary profit and cash flow to support your retirement needs?
  • Must the business be sold to support your retirement needs?
3) Management

What will your role be?

Who will manage the business both short-term (during the transition period) and afterwards?

  • Will successor managers be family members, key employees or a combination of the two?
  • Is there more than one active child to split management duties?
  • How do you attract and retain key employees?
  • Should outside directors or an advisory board be utilized?
4) Structure
  • Will you retain control by holding voting interest until death, disability or retirement?
  • Is selling the business necessary for your retirement needs?
  • Should you consider a salary continuation agreement or defined payment arrangement?
  • Who will own the business and how to fairly treat any inactive children?
5) Taxes

How can you minimize taxes?

  • What are your Federal estate, income and transfer taxes? What about your state death tax exposure?
  • What is the best method of selling or gifting stock or other assets to reduce future taxes?
  • Do you need life insurance and if so, how much and what kind?
  • Have you considered the benefits multi-generational planning with trusts?
  • What about charitable planning to provide current tax reduction strategies, reduce transfer taxes and fund your legacy?

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