Problem Solvers

By Howard Kass

Eventually, every business owner will leave the business, and if there is no plan for succession in place, the future of the business will be left in someone else’s hands.

Cleveland-based Zinner & Co. LLP is a full-service accounting, tax and wealth-management consulting firm that helps individuals and business owners plan for their financial futures.

“It’s our job to be problem solvers and if someone comes to us asking if something can be done, it’s not our job to say yes or no,” says Howard Kass, a partner with Zinner & Co. “It’s our job to find a way to do it. And if it can’t be done, we need to find a solution to that problem.” 

When it comes to business succession planning, many owners look to their children to take over the business. However, conflict can erupt for families with more than one child.

“Many people have a hard time with the concept that fair does not necessarily mean equal,” Kass says. “Often the fairest thing to do for the business is to give it to the child most qualified for the job. When that happens, we usually recommend the other children get a greater share of other assets of the estate.”

Kass says the real problem occurs when there is no apparent successor within the family. “It might be that the business isn’t what the child wants or isn’t capable of running it,” he says. “Then we consider alternatives — employees within the company who may want to take over or consider finding a buyer in the market. Liquidation is usually the least attractive option.”

A solid succession plan can alleviate many of these problems, says Kass. “Not only that, the owner can reduce the taxes paid and get the maximum value out of the business.”