David DeLap is a tax partner and CPA at Delap LLP and a long-time friend of Jared Siegel. With over 35 years of experience, Dave is a seasoned expert in accounting and wealth advisory, specializing in estate and succession planning for closely-held family businesses. He joins Jared Siegel to discuss exit planning and family enterprises.
Here are a few highlights from their conversation:
“Exit planning combines a plan, concept, effort and process into a clear, simple strategy to build a business that is transferable through strong human, structural, customer and social capital,’ Jared explains. The future for you, your family and your business are all addressed by exit planning through creating value.
The three main factors that influence transition timing are: personal timing, business cycle timing, and private capital markets timing. Jared briefly describes each factor and the roles they play.
As a company’s earnings increase, so does its value, Dave shares. Some internal organizational factors that contribute to its value are the strength of management, good internal controls and accounting systems, and sales contracts.
The only certainty in life is uncertainty. The best business owner is one who has contingencies in place for the most common business uncertainties, which are death, disability, divorce, disagreement, and distress. By having a plan for each, they pursue financial unbreakability.
By giving your non-voting shares to family members while keeping your voting shares, you can gift value without surrendering control, Dave briefly explains.
Resources
DelapCPA.com
David DeLap on LinkedIn
Know Your Gaps
The 5 D's: Have you planned for these contingencies?
