Why is it important to include a CPA and financial professional in the planning process ?
In addition to retaining an attorney to draft the operative documents, it is important to involve a CPA to monitor the tax implications of the transactions directed in the architecture of the business succession plan and a financial professional to discuss the financial viability of the plan as it affects the business and the individual business owners. For example, if a buy-sell agreement directs the business to purchase the ownership interest of a deceased owner, what are the income tax consequences to the business (and to the individual owners) and how will money be raised for the structured buy-out? The CPA and financial professional are integral to assessing the viability of a succession plan from all angles.
