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The greatest generation of entrepreneurs is reaching retirement age, and many are facing the challenge of business transition to the next generation. The decisions in this process have far-reaching impacts for the business, and there are also significant implications for preserving family wealth. LBMC is uniquely positioned to provide the ideal combination of services to help our clients successfully navigate these critical transitions.

Guiding Principles for Successful Family Business Transition:

  • Family comes first. Whatever happens, the family wealth should bond together and strengthen family ties, not divide them.
  • The owner has a fiduciary responsibility not only to the family, but also the employees, to make an orderly transition.
  • Minimize tax obligations.
  • Provide for multiple generations if family members retain the business.
  • An objective valuation of the company is necessary to treat everyone fairly.
  • Parents should express their feelings and intentions to the children to set realistic expectations.

Tennessee Transition Process for the Family Business

Service Descriptions:

Business Planning
The first step in planning a family-business transition is to separate the family issues and the business issues as much as possible. LBMC Planning Services works with you, your family and your management team to understand the challenges in a family business. Our process adds structure, discipline and philosophy to help your company focus its resources and manage strategically through the transition.

Estate Planning
Preserving family wealth is a major consideration in this kind of transition, and the tax codes can present thorny issues to families who want to pass on the financial rewards of a successful business. LBMC’s estate planning experts will help structure your estate, trusts and gifts to ensure that your family will continue to enjoy for generations what you have worked so hard to accumulate.

Whether you are planning to transfer the business to a family member or transition the wealth represented by the business, an objective valuation of your business is critical in your decision process. In our work with families, we clearly understand the need to transition the ownership and management responsibilities to family members following the IRS Revenue Ruling 59-60. This normally represents a conservative valuation and meets all IRS requirements. We also recognize the needs of clients who wish to transition the wealth from the business by selling the business. LBMC frequently advocates for clients who seek to maximize the selling price. Either way, a sound, independent valuation of the company provides a solid foundation for the family to see a clear direction for the company’s future.

Organization Succession & Transition Planning
Who needs to manage this business after you decide to leave? Are any of your children interested or up the task of taking the reins? Is there a trusted lieutenant who can run the business as well as you ever could? How do you balance those competing needs? LBMC Planning Services asks the hard questions, works with you to find the right answer, crafts an organizational business transition plan and supports implementation of the most successful transition possible. Your employees need and deserve a positive transition.

Ownership Transition Planning
Does the family want to continue to own the business? Do long-term employees want to buy and run it? LBMC’s team will ensure a smooth, profitable transition to the next generation. We understand the challenges in transitioning ownership to active members of the company as well as to more passive owners. We work with you to develop easy to understand family governance to minimize disruptions caused by lack of information, lack of understanding and outright jealousy.

Mergers & Acquisitions
Sometimes, the family’s best option is selling the company. When that’s the case, LBMC’s M+A group has the experience to make the most of the opportunity.

Wealth Management
For ongoing financial health and well-being, LBMC’s wealth advisors can help plan and direct your resources into a sustainable and long-lasting program to take care of the family financially for generations to come.

Family Office
Have you reached a point in life where you want freedom from managing day-to-day money issues? Our Family Office provides discrete and expert management of your income and out-flows.


Download and read the PDF for a full description of the LBMC process and description of the services. Then contact us to find out how we can work with your company to ensure the continued success of your enterprise and family.

Tennessee Healthcare Reform

Planning Team