Tom Meaglia photo

Tom Meaglia, ChFC®, AEP®,


Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507


Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750


Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120




November/December 2022

Succession Planning for Your Family Business

Succession Planning for Your Family Business

You may be completely wrapped up in running your business now, but someday you’ll probably be ready to step away. Succession planning can help ensure a successful transition.

Who Will Succeed You?
Succession planning begins with choosing someone to take over the business once you’re no longer involved. It might be a child, grandchild, or another relative or a key employee who will purchase the business from you. Transferring ownership to a family member should include a written plan for compensating the business owner, possibly by providing an income stream during retirement.

Grooming Your Candidate
Grooming your successor to take over may take several years, so it’s important to choose a candidate long before you’re ready to turn over the company. Your chosen candidate should become familiar with every aspect of the business by working in different areas or departments. Helping your intended successor build relationships with key clients prior to assuming your role can help ensure a good working relationship and continuity of business.

A Written Plan
Create a document that spells out exactly how the succession process will work. Your document should include arrangements for mentoring the candidate and designate specific employees to oversee the company’s operations and procedures. Identify training opportunities that will help your successor take over the business once you’re gone.

Selling to a Key Employee
Your successor may be a key employee who will purchase the business from you. An independent valuation can help you determine a fair price. You and your successor will have to come to an agreement on how to structure the sale. Common options are an all-cash transaction or installment payments over a designated period.

Tax Concerns
Selling a business can leave you with a large tax bill, so start planning well in advance to protect the proceeds of a sale. Strategies for reducing taxes on a sale include the Qualified Small Business tax exclusion and a non-grantor trust. Your tax advisor can determine if either strategy is appropriate for you.

Choosing a successor for your business can be challenging. Starting the process several years in advance can make the transition easier.


Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Investment advisory services are offered through Fusion Capital Management, an SEC Registered Investment Advisor. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.