015: Kids in the Business: When Personal Estate Planning and Business Succession Planning Collide


In episode 15 of Absolute Trust Talk, Kirsten welcomes financial planning and investment professional John O’Dea of Summit Financial Group to the show. John’s focus is the wealth accumulation and protection needs present for individuals who own and operate a business. He has over a decade of experience working to simplify investment, insurance, and succession planning concepts.

Kirsten and John start out by discussing how to begin business succession planning for parents who own a business and want to transition it to their children but may not have planned for it yet. The discussion then dives deep into analysis of each step – valuation of a business, what the parents need to retire comfortably, how to add other professionals into the mix, and how to make the process fair for children who might not work in the family business.

Big Three from Episode #015:

  1. Start with goals and objectives – normal planning goals and processes
  2. Solve for what mom and dad need or must get
  3. Then indicate key paths to take

Time-stamped Show Notes:

2:46 – John jumps right into discussing how he gets started when helping clients transition a business.

6:24 – John shares how vital the EBITDA/MEBITDA calculations factor into cash flow.

8:45 – Kirsten asks John to share what other surprises arise in this planning.

12:12 – What comes after figuring out what the parents must get in order to step away from the business?

16:25 – What happens if there is a gap between what a client wants vs. what value there really is in their business?

18:10 – John discusses how to close a gap ensuring that assets last as long as needed.

28:07 – John shares how to communicate or incorporate transitioning parties.

31:53 – What are the most common conflicts in this process?

38:45 – How exactly do you transition a company to a new generation?

43:09 – John shares a couple of other common surprises uncovered when doing the business transition and succession planning.

Episode #015 Freebie: The Retirement Income Challenge

Retirement is something that individuals and couples work their whole lives for. When you stop working, you still need to live – there are still monthly expenditures, but that paycheck disappears. In conjunction with this episode, Absolute Trust Talk guest John O’Dea shares a key tool that he uses in his practice, The Retirement Challenge white paper. This document helps prospective retirees understand some of the challenges they are up against and describes some of the strategies available to address these challenges. Click here to gain exclusive access to your own copy of The Retirement Challenge white paper.

Resources/Tools/Links Mentioned in This Episode:

Never Split the Difference: Negotiating as if Your Life Depended on It by Chris Voss and Tahl Raz

Check out this episode!

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