Business Succession Issues for Professional Services Firms (Journal Article)

The successful transfer of a professional practice requires time, careful planning, and a smooth transition process. Life and disability insurance can help assure that the business and/or other owners have liquidity in the event of a sudden, unexpected event, while life insurance cash values can provide liquidity for lifetime buyouts. In any event, a longer planning horizon is often needed for sellers to realize the maximum value for their lifetime of work, and for buyers to make the most of the book of business and relationships they acquire.

Author: April Caudill, JD*, CLU, ChFC, AEP, is a business and advanced solutions director with Principal Financial Group®, Des Moines, IA 50392. She is part of the business and advanced solutions team that assists advisors with tax and legal concepts related to advanced planning and business owner needs.