Succession Planning Trends

Goals

In order to become a trusted source of information about trends and laws in succession planning (especially for small and mid-size businesses, within families, ESOP/employee stock ownership, or other types of hand-offs) with the ultimate use being to develop a blog post. Specific states of interest include CT, NY, RI, or MA.

Early Findings

  • A few best practices related to succession planning, as opposed to exit planning, are creating a succession planning team, conducting role and people analyses, and developing and documenting the succession plan (e.g., developing timelines and identifying stakeholders or third-party permissions). The final step is to proactively implement the plan.
  • In Connecticut, if the business in question is an LLC, partnership or corporation, there may already be provisions in place that dictate passing ownership shares. However, rules change based on situations like voluntary retirement.
  • An additional layer to consider in Connecticut is that different tools are used to accomplish certain goals. For instance, grantor retained annuity trusts, private annuities, and family limited partnerships might be best depending on the circumstances of the business succession planning.
  • One source that appeared to have a lot of recent articles to mine includes Human Resources Today’s resource list for succession planning trends.
In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals.

Proposed next steps:

You need to be the project owner to select a next step.
The research team can continue the research to identify 5-7 insights about any recent changes to tax laws related to handing-off or attaining a business, or succession planning in the states of Connecticut, New York, Rhode Island, or Massachusetts. The insights will focus on those relevant to small- and medium-sized businesses within families, ESOP, and any other relevant hand-off entities/structures. Because changes in laws can happen slowly, the research team recommends a research date range of 2015 and onwards. Please correct this date range if something else is desired.
The research team can also assist in developing a blog post and gathering trusted information by conducting a press scan for news/press releases about small- to medium-sized companies (especially those in CT, NY, RI, or MA, if available) that have experienced succession planning and/or hand-offs regarding families or ESOP. We will attempt to find 7-10 stories. For each story, we will provide the title, a brief synopsis, the news link, and the date of coverage. For this more historical/current analysis, the team recommends a date limit of 2010 onwards (with a focus on the most recent stories). [1]