Running a family business takes skill, perseverance and hard work. A successful succession plan—one that may involve transferring ownership to family members, selling your share to current management or an outright sale of the business—requires the same level of focus and commitment.

The process begins with some basic but vitally important questions:

• What are your goals? Where do you want to be in three, five or ten years? Do you want to stay involved in the business or move on to other entrepreneurial or philanthropic work?

• If you are not a sole owner, what do your partners want? If you want someone in the family to succeed you, is that person ready for the responsibility? What about other members of the family who do not have an interest in the business?

Ideally, you can start planning for succession at least two years ahead of time. To get answers to your questions, you will want the advice of financial and legal specialists who are well versed in the succession planning process. An up-to-date evaluation of what your company is worth is a critical input in the decision-making process. If you are considering the sale of the business, you will also want to review steps that could increase the company’s value and/or liquidity.

You also want to consider other stakeholders in the process and how they might be impacted by a change in ownership or management succession. Here are some key questions to answer at this stage:

• Who are your key employees? Do you have key-person insurance in place?

• Who are your key customers and do you have contracts with them?

• What about key suppliers and contractors?

• Do all outstanding contracts contain change of control provisions?

As your own objectives become more focused, you can look to your team for advice about the pluses and minuses of different transaction structures. Moreover, you can and should review and update your personal financial plan. How does this transition in the family business impact your retirement savings strategy? Are you well prepared to meet significant financial obligations for other family members such as education expenses for children or caregiving costs for a parent? Your accountant, attorney and financial advisor can all help to ensure that your plan is up to date and incorporates the impact your business succession will have on your family’s income statement and balance sheet.

It is also important to review your estate plan at this juncture. Working with your estate attorney, you will want to make sure your will reflects your current wishes, assets are titled appropriately and you have designated current beneficiaries. Also, you can consider estate planning strategies that help transfer assets and minimize tax liabilities, recognizing that these strategies often take time to implement.

We, at The Moore Group, have helped many business owners navigate a succession process. We appreciate what it takes to manage and grow a business—and we bring significant experience, skill and dedication to helping you choose and execute the strategy that best meets your needs and goals.

Marie A. Moore is a Financial Advisor with the Wealth Management division of Morgan Stanley in Dallas, TX. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC, www.sipc.org. Morgan Stanley Financial Advisor(s) engage Worth to feature this profile. Marie A. Moore may only transact business in states where she is registered or excluded or exempted from registration: www.morganstanleyfa.com/themooregroup. Transacting business, follow-up and individualized responses involving either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made to persons in states Marie A. Moore is not registered or excluded or exempt from registration. The strategies and/or investments referenced may not be suitable for all investors. Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. This material was not intended or writtento be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.