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20 Hartford Business Journal • November 5, 2018 • www.HartfordBusiness.com T hose who own a business — especially a family business — need to, at some point, have a conversation about succession planning. Succession planning is the process of establishing a framework for what will happen to a company should its business owner(s) retire, become incapacitated or pass away. It is setting up things to run if that owner is no longer a part of the organization. A 2013 Survey of Family Businesses by the Connecticut Business & Industry Association (CBIA), showed that 40 percent of family businesses in the state lacked a succession plan, though 58 percent of those responding said they intended to pass their business along to family. Only seven percent said they felt properly prepared for such a transition. Some of the potential pitfalls of arranging for business succession without expert help could include: a failure to document terms in writing; diffi culty deciding family shares (equal across the board isn't always best); not adequately preparing a business transfer for audit; rushing the succession process; or not taking advantage of the proper gifting opportunities. A good time to begin business succession conversations? Now, according to Webster Bank Regional President Timothy Bergstrom. "As we're accustomed to working closely with our business clients, we suggest that they think of this process earlier rather than later," he said, and take a comprehensive look at the situation with a fi nancial advisor, banker, attorney and accountant. "It's never too early." Each Case Unique The process of transferring company succession diff ers from other business- banking processes, says Adam McLaughlin, Webster Bank, senior vice president, commercial banking. It's important that an experienced team is there to review the owner or owners' plans, ensure all will go smoothly and reduce risk wherever possible. With a family business, diff erent dynamics may be involved as the company is 20 Hartford Business Journal • November 5, 2018 • www.HartfordBusiness.com | Read how family businesses can avoid pitfalls as a new generation takes over—and how succession planning can build on success. | PHOTOS | GETTY IMAGES BY SUSAN SHALHOUB It's your family's business. It's your family's business. It's your family's business. Begin succession planning conversation now Sponsored Content WEBSTER BANK INTELLIGENCE SERIES