In any industry, succession planning is a vital aspect of transitioning wealth from one generation to the next.
A chiropractor with decades of owning and operating a successful practice behind him wanted to hand his practice over to one of his children. He sought to pass on the goodwill he’d generated without incurring significant tax bills or disrupting his many happy patients.
We began the succession planning conversation several years prior to the client’s retirement. At that time, his son was working for a practice overseas. We:
- Ensured the parents were financially secure and not reliant on practice income or any sale proceeds
- Ensured the parents’ wills were up-to-date, properly addressed the gift of the business to the son, and provided equity among the rest of the clients’ children (a precautionary step to avert potential disputes)
- Provided the son with an appropriate business structure without interrupting the business or triggering any capital gains tax
- Secured the parents’ other assets in appropriate asset holding entities and leased the practice premises to the son
- Transitioned patients and business operations over two years while the father stepped away from full-time work and business management.
Their business seamlessly transitioned from one generation to the next, while ensuring:
- The parents were secure in their retirement.
- All children were treated fairly and equitably.
- Patients were well cared for.
- The son had a major head start in life and was able to reinvigorate the business with the passion and enthusiasm of youth.