Services
Business Succession
Advisory and Accounting
Tax Planning
Industry
Service Business
Background
Our client was a mother-daughter legal services team. The mother had built a successful practice and the daughter would be taking over the business during the next three to five years. The mother was looking for a way to transfer the business to her daughter, while retaining control during the three-to-five-year transition period.
Our Approach
The Encompass team met with the mother and daughter to get a comprehensive understanding of their unique needs. We then structured the succession plan as follows:
- We found a tax-efficient means for the daughter to become a shareholder of the corporation.
- We carried out a tax-efficient transfer of the mother’s corporate savings to a separate holding corporation.
- The share structure and ownership was designed so that the mother would retain control of the corporation, while her daughter transitioned into the business.
- Once the daughter is fully transitioned, the mother will be able to step away from the business.
Benefits
- The unique needs of both the mother and the daughter were met.
- The succession plan was completed in a tax-efficient manner.
- The business can continue to flourish in the hands of the next generation.
