Overview of succession planning using compensatory devices
Consider unique exit strategy tools for closely held businesses
The decision to begin exiting your business should be considered carefully to ensure your goals are met and the business can continue to thrive. Many owners of closely held businesses face the challenge of having a limited market of buyers and may want to consider alternative tools when developing their exit strategies.
This article provides a summary of less commonly considered succession planning tools that can benefit owners of closely held businesses, including:
- Employee stock ownership plans (ESOPs)
- Retirement plans
- Equity compensation plans
- Other compensation techniques
These approaches all have a compensatory nature and generally provide tax benefits as part of an overall succession plan. Additional articles in the series explore these areas in more detail.