Table of Contents

About the Author

Foreword

Section I: Managerial and Ownership change

Chapter 1
What is succession planning?
A solid succession plan is based on the acceptance that you don’t know what will happen but that you will be prepared anyway.

Chapter 2
Getting ready
Start planning for succession today, because the longer you wait, the harder it will be to put something in place that meets your needs.

Chapter 3
Making the decision
You must decide what is important to you, your family and the business – in other words, you must develop a vision of the future.

Chapter 4
Grooming a successor
The process for training your successor is basically the same whether you choose a family member or someone else.

Chapter 5
Transferring to a family member
Transition of a family-owned business to a relative raises unique management, legal and financing issues.

Chapter 6
Selling to a third party
Consider another trucking company or an individual who is looking to enter the industry or move from a position at another carrier.

Chapter 7
Selling to employees and management
Aside from financing, transition to non-family employees might follow precisely the same path as a family succession.

Chapter 8
Going public and shutting down
Going public lies at one extreme of an owner’s hopes about his business. The other extreme is giving up on the business altogether.

Section II: Business Valuation

Chapter 9
Overview of business valuation
No matter how you transfer your business, you must know what it is worth.

Chapter 10
Business valuation theory
There are many ways to value a company, and the IRS plays a role.

Chapter 11
Benefit streams
The benefits from a company are why you are in business and include profits, payroll,
revenue and cash flow.

Chapter 12
Required rate of return
Before committing to a risk, a buyer demands to know what he can expect to gain.

Chapter 13
Valuation discounts
A minority stake in a company does not carry its pro rata value of the entire company because lack of control is a real worry.

Section III: Estate planning

Chapter 14
Estate planning and succession planning
Estate planning and succession planning are distinct processes with separate purposes, but they must be coordinated carefully.

Chapter 15
Basics of estate planning and asset protection
With proper advance planning, there’s no excuse for getting slammed by estate taxes.

Section IV: Execution

Chapter 16
Structuring the transaction
You need professional help to set up any deal, but at a minimum you must have four items in
place – and tax issues are paramount.

Chapter 17
Funding the transaction
Unless the owner wants no return on his equity, the deal requires financing, whether it’s a transfer
to family members or a sale to other parties.