I recently met with a husband and wife who have owned and operated a business for many years. Through hard work and perseverance, they grew a small business into a thriving company. Now, in their late sixties, they are considering retirement.
Financially, they are well positioned for this next chapter, but retirement is not as straightforward as it may seem. A key question is how they will transition out of the business. Their options include selling to a competitor or strategic buyer, closing the company, or, as they hope to do, transferring ownership to their two children, both of whom play critical leadership roles in the organization.
Like many family business owners, however, they are hesitant to step away completely. After dedicating much of their lives to building the company, relinquishing responsibility for day-to-day operations is difficult. Their concerns are heightened by ongoing tension between their children, whose communication challenges often spill into the workplace. One sibling routinely makes significant business decisions without consulting the other, creating strain that affects business outcomes, family relationships, and the company’s culture.
While this family works with several professionals, including an executive coach, attorneys, and tax advisers, their advisory team is not operating in a collaborative way.
Why collaboration matters
The strongest outcomes often come from a team of trusted professionals who communicate openly, coordinate their efforts, and work toward shared long-term goals. Each adviser brings unique expertise and perspective, but when communication breaks down across disciplines, important planning opportunities and potential risks can be overlooked.
When professionals with different areas of expertise work together, they can leverage their complementary strengths to identify opportunities, solve complex challenges, and develop more effective strategies. Collaboration can also reduce unnecessary duplication and the risk of conflicting advice.
Just as importantly, collaboration builds trust. When advisers communicate consistently and work together effectively, clients have greater confidence that everyone is aligned and working toward the same goals.
Building your advisory team
Depending on your circumstances, your advisory team may include several different professionals. The key is not simply having the right advisers but ensuring they understand your broader goals and are willing to collaborate with one another.
Financial adviser
A financial adviser often has a comprehensive view of a client’s financial life. They may review investments, insurance coverage, tax returns, and estate planning documents while coordinating with other professionals to help ensure all aspects of a client’s plan work together effectively.
When selecting an adviser, consider not only their experience and credentials but also whether they take a comprehensive approach to planning and are willing to work alongside your other advisers.
CPA or enrolled agent
A certified public accountant or enrolled agent can play a critical role in financial planning by helping you understand your tax obligations and identify opportunities to improve tax efficiency.
For individuals and families with more complex financial situations, tax planning should be an ongoing process rather than a once-a-year exercise. A proactive tax professional who collaborates with your other advisers can help ensure tax considerations are incorporated into major financial and business decisions.
Estate planning and corporate attorney
Attorneys play a vital role in helping families protect their assets, transfer wealth, and prepare for major life and business transitions.
An estate planning attorney can help ensure your wishes are carried out and your family is protected in the event of incapacity or death. For business owners, a corporate attorney can be an essential partner in succession planning, helping structure ownership transitions and protect both the business and the owner’s long-term objectives.
The most effective legal advice is tailored to your circumstances and coordinated with the rest of your advisory team.
Insurance broker or agent
Insurance is an important risk-management tool and can play a key role in protecting your family, assets, income, and estate. An experienced insurance professional can help assess coverage needs, identify potential gaps, and recommend appropriate solutions.
As with any member of your advisory team, it is beneficial to work with an insurance professional who understands your broader financial picture and is willing to coordinate with your other advisers when important planning decisions arise.
Executive coach
An executive coach helps individuals strengthen their leadership skills, navigate complex challenges, and drive personal and organizational growth.
For business owners and family enterprises, an executive coach can be particularly valuable during periods of transition, such as succession planning or leadership changes. They can help improve communication, facilitate difficult conversations, manage conflict, and support the development of future leaders.
The most effective coaches take the time to understand your unique circumstances and collaborate with the rest of your advisory team to support your long-term goals.
Creating a lasting legacy
As wealth and complexity grow, a coordinated team of trusted advisers can help ensure important planning decisions are made thoughtfully and efficiently. When advisers communicate regularly and work toward shared objectives, families are often better positioned to navigate major transitions, manage risk, and pursue their long-term goals with confidence.
In the case of the family described above, they recognized the value of a collaborative approach and committed to regular meetings with their advisory team. By working together, their advisers developed a succession plan tailored to the family’s goals, helped prepare the owners for retirement, and provided guidance to strengthen communication and leadership within the next generation.
The result was a clearer path forward for both the family and the business, helping preserve a legacy they hope will endure for years to come.
Teri Parker is a certified financial planner and vice president for the Riverside office of Captrust Financial Advisors. She has practiced financial planning and investment management since 2000. Contact her via email at Teri.parker@captrust.com.