Food Processing
Food Processing
For the food processors, we work with the operation is more than a business. Yes, it’s the source of income and growing equity. It’s also a part of the owner’s family and a great source of pride. We often of an owner who will spend more time at work than with the family. As a labor of love and testament to realizing the American dream, owners want to see the business continue and acknowledge great pride in having one of their children carry the torch. But they know continuing success is difficult and very rare.
Most successful operations end up as a subsidiary in a larger conglomerate. Those that don’t measure-up, may transition into a temporary holding pattern, which usually falter after a time due to insufficient capitalization, incompatible estate plan, or unprepared next-generation. Most owners know planning for succession is difficult. The process involves tax, legal, and financial disciplines. It demands the services of a practitioner who understands business and can bring the disciplines together.
The planning process can be confusing. It can quickly overwhelm even the sharpest owner. Most owners know what they don’t know and appreciate a trained professional who will step in and manage the process in an orderly fashion. Legacy’s food processing clients want solutions for:
Since 2005 Legacy by Design’s four-part planning model has been helping the owners of food processing operations across the U.S. plan for multigenerational success. Legacy’s comprehensive planning model includes:
- 1Financial Security
The first step in the planning process is providing financial security for an owner and their families. The process begins with a thorough understanding of an owner’s goals for retirement, continuing business success, and family involvement. - 2Ownership Transition
The second step in the planning process is designing a smooth and effective ownership transition. Mitigating risk and protecting an owner’s estate are paramount in the process. Owners want an ownership strategy that doesn’t create unnecessary risk and allows a new owner to gain equity. - 3Leadership Structure
The third step in the planning process is establishing a leadership structure which allows new and existing owners to manage the operation through transition. Most owners want a well-prepared next generation to take an active role in the operation. They want to gradually cede responsibility and mentor the next generation into a leadership position. - 4Estate Plan
The fourth step in the planning process is minimizing exposure to the estate tax, mitigating transfer costs, and providing lasting security for the family. As a rule, owner’s want to leave their loved ones secure and know their business will continue. They want to mitigate costs and minimize taxes.
Legacy by Design’s four-part comprehensive succession planning process is designed to generate results. So, contact Kevin today for a consultation, we’ll address your questions, eliminate the confusion, and help you achieve peace of mind.
Do You Need Answers to Your Succession Planning Questions?
Call Kevin Now: (530) 671-2100 / (509) 624-5929