Take Our Business Transition Readiness Quiz!

1. 

The compounded growth rate of our profits over the last 5 years is 10% or more per year.

Yes  No

2.

Our market share, on average, has grown over the past 5 years.

Yes  No

3. 

We have a board of directors or an advisory board (composed of at least 75% non-stockholders or partners) that meets at least once a year.

Yes  No

4.

We have stockholders or partners meetings at least once a year. (For family firms the meetings should include non-working stockholders, stockholder's spouses, and other financially interested parties). 

Yes  No

5.

We have a successors identified in writing for all of the key people in our organization. 

Yes  No

6. 

We have a written plan as to the requirements needed for a family member to work in the business.  Included in the plan is a provision that the in-coming family member must work outside of the business for at least 5 years.

Yes  No

7.

We have a Buy/Sell  agreement.

Yes  No

8.

We have an agreement that allows shareholders or partners to exit the business while they are still alive.

Yes  No

9.

a) If the business is not going to be passed down to the next generation, we have an exit strategy.
b) If the business is going to be passed down to the next generation, the senior generation has announced to the family a date as to when they will exit from the business and hand control to the next generation.

Yes  No

10.

We have an estate plan for each owner that would provide for at least one of the following three provisions upon death (if any of the owners are married this assumes the spouse dies at the same time):
a) There would be no estate tax owed.
b) There is sufficient life insurance to cover the estate tax liability.
c) There is money put away to cover the estate taxes.

Yes  No