Business succession planning best done from day one.

• Author: Barbour, Tracy
• Position: FINANCIAL SERVICES

While a considerable number of baby boomers ponder how they will spend their golden years, the topic of business succession planning is gaining more attention in Alaska.

As a relatively young state, Alaska now has second and third generations seeking ways to transfer the ownership of their business while ensuring continuity of the enterprise. But there's not an abundance of business brokers in the state to shepherd companies through the succession planning process. However, owners can build an advisory team of estate planning attorneys, wealth management experts, accountants, and other professionals to help them orchestrate their exit strategy.

Making a Seamless Transition

Succession planning can encompass everything from extracting money and preserving wealth to improving leadership and fostering a good governance concept, according to Joe Beedle, president and CEO of Northrim Bank. For a closely-held business, the strategy could focus on the smooth transference of leadership to continue growth. For a large corporation, the key concept could center on having an everlasting life. "Our perspective for succession planning is that it's for continuity, seamlessness, and preserving value," Beedle says.

In Alaska, business succession often involves family-owned companies selling to monetize the business or transferring ownership to heirs. For smaller entities with less infrastructure and broad senior management, the impact of business succession tends to be magnified, says Brent Reys, managing director of Pacific Portfolio Consulting, a Seattle-based Northrim affiliate.

Pacific Portfolio, which has an Anchorage office on C Street, helps families navigate the financial potholes, so they won't be overwhelmed by the many options that have to be considered. The company also helps them address gray areas and truly consider their wishes. "It's about understanding the participants, their hearts and spirits, and what they want to accomplish," Reys says. "We're kind of like a financial psychologist."

Reys holds family meetings at least annually to discuss the goals for the succession plan. He also stages an "advisor summit" to ensure everyone is acquainted and that the plan is up to date with the current company valuation, market conditions, tax laws, and other relevant factors.

Typically, succession planning involves the sale of a business by a retiring owner, which can be a delicate situation, according to Brian Pinkston, president of Bright Road Wealth...