When is the correct time for formulating a succession plan? It might seem like an irrelevant question, especially if business owners are in the growth stage while their children are yet to leave for college. However, it must be noted that this is one of the most crucial plans that a business owner needs to have.
To shed light on succession and the transfer of the legacy down to the next generations, Matt DiFrancesco is joined with Jim & Molly Creenan. The husband and wife duo discuss their services to their clients at Creenan & Baczkowski, PC.
As a business owner, you will need to consider several financial aspects. In addition, whether you are an auto body shop owner or have a collision repair company, you will need several expert services and constant guidance from professionals to take your family business to the top.
Staying proactive and keeping yourself well-aware of the current business and legal practices is crucial to operating a flourishing business. Schedule a free 20-minute conversation with Matt DiFrancesco from HighLift Financial today!
About Jim and Molly Creenan
Jim and Molly Creenan are a team of attorneys who own the law firm Creenan & Baczkowski, PC. Their practices and services include:
- Business Law
- Succession Planning
- Municipal Law
- Estate Planning
- Estate Administration
The firm helps business owners address the legal challenges of implementing plans to ensure the future success of their business. Jim’s focus is on business counseling and succession planning. As for Molly, her area of expertise is estate planning, estate administration, and elder law. Both Jim and Molly are 1996 graduates of the Duquesne University School of Law.
The Million Dollar Questions
Will my children be interested in running my business? Are they going to be capable of taking it over? Will I have to sell my business if my kids don’t want to run it?
Whenever I view the businesses that I work with, for instance, the automotive collision repair industry, these are the most significant pain points that I come across.
Business owners like certainty, and this is where Jim and Molly come in. They help these clients create legal protections that provide them with more confidence about their futures. The most challenging area they have to deal with is when the torch has to be passed to the next generation.
The issue arises when the client doesn’t know or finds it hard to decide “when and how to relinquish control”, whether operational or ownership control. So, the initial step that Jim and Molly perform is understanding the family business.
After that, they evaluate all estate planning options and discuss the business operations. They also investigate the company’s current, legal, and accounting status to determine what details need to be accounted for in the process.
Furthermore, they dig deep into the business assets, including real estate inventory, equipment, customer lists, and goodwill. If we talk about automotive collision repair specifically, it’s not uncommon for those industries to have a steady stream and existing client relationships that must be protected.
So altogether, the duo helps identify the best outcome for the company. Whether that’s income needs, using a sales technique, or finding a key employee capable of managing and taking it to the next generation. If none of those options are available, they always help the client identify ways to find an external buyer.
A Few Facts and Figures
- The average lifespan of a founder of a business as CEO is about 24 years.
- About 40% of owner founders are expected to retire after spending this time within five years.
- 90% of private companies across the country are family-owned, but only one-third of these have a succession plan.
“Children might be committed to receiving the income, but the sweat equity factor is one where we have to identify whether they are appropriate candidates to become owners of the business.” – Jim Creenan
According to Jim and Molly, the businesses that don’t have a succession plan think their company should be dissolved and wound up as they can’t operate it themselves. It certainly indicates that they miss a significant opportunity to accumulate sweat equity and transfer that wealth to the next generation.
How To Get In Touch With Jim And Molly?
The ideal client for Creenan & Baczkowski is a family-owned business looking down the road. They are assisting clients across all industries such as:
- Automotive
- Hospitality
- Commercial
- Real estate
- Construction
- And many more!
As the family businesses continue to understand the importance of succession planning and generational wealth, the firm is seeing an increase in the willingness of family business owners to pass the torch to the next generation.
The couple is running a successful program to help small business owners who might be afraid to pick up the phone and call a lawyer. The reason is that they fear that there’s going to be a huge bill just for asking a simple question.
So, to overcome this obstacle, they have started their 365 counsel plan. It allows them to sit down initially with the client to do an annual review. Then, they set a low monthly fee based upon what they expect during the year ahead.
Moreover, they don’t charge for phone calls, questions, and emails. So in case you have any questions or queries, head over to their website or call them at 724-733-8832.
How to Reach Matt?
Whether it’s financial services or planning to pass down your legacy, you will always have a list of questions. You must be well aware of all the details and consequences when taking steps to affect your family business. Schedule a private consultation strategy session with me to go over your concerns and to know the feasible options.
At HighLift Financial, we have an all-rounder team to assist you in most of your business areas. Our goal is to stay dedicated and achieve the best possible solution to the ongoing challenges that the clients are facing. Be it family meetings or pivots such as moving to a virtual office. You can receive guidelines in numerous areas!
Disclaimer
The information compiled and posted here solely represents the opinions and views of the guest. It might not necessarily be similar to the opinions and views of High Lift Financial. The availability of this content only serves educational and informational purposes. It is not a substitute for tax or legal advice or professional investment.
Always make sure to consult your financial advisor with any queries related to personal or business planning. DiFrancesco Financial Concierge, LLC. d/b/a HighLift Financial is a Registered Investment Advisor registered with the State of Pennsylvania and subject to the State of Pennsylvania’s regulatory oversight.