"People who make and hold on to their fortunes develop a careful, effective plan coordinating business, personal and succession issues," says William R. Legier, managing director of Legier & Materne, apac, Consultants and CPAs.

"We all know the story of the hardworking entrepreneur, who starts in a small facility, works diligently over the years, building and expanding his family business into a thriving successful venture but in the end dies broke," Legier says, "or when the entrepreneur retired, he turned his business over to the wrong people who ran it into the ground, or the owner dies before retirement and the business must be sold or liquidated just to pay the estate taxes."


How did this happen? Legier says, "Lack of planning!"

The Plan

Legier says his firm offers a three part process to plan for the accumulation of wealth, its retention and eventual transfer to heirs:

• The strategic business plan
• The personal financial plan
• The business succession plan

The business plan and succession plan address how to successfully build a business and exit it. The personal financial plan addresses the successful accumulation, retention and transfer of wealth. To create the greatest potential for success, the personal financial plan and the strategic business plan is coordinated with the owner's succession plan, which is why Legier & Materne has a certified financial planner on staff.

No Dress Rehearsal

According to Legier, many owners go into business without even a "dress rehearsal." They just give live on stage performances. Sometimes success is by trial and error over years of struggle, "the price of tuition." Legier asserts, however, the astute entrepreneur will carefully visualize his dream and then document every aspect of it with a written plan, testing and refining it until he has a solid formula for success.

The Shrinking Portfolio

Legier says there are many threats to wealth retention; from taxes, to poor investment performance, to unplanned expenditures. "A sound financial plan will help the entrepreneur guard against losing his hard earned wealth," states Legier. "Even inherited wealth requires a sound financial plan. Portfolios have been known to shrink to one half their size over short periods, due to inflation coupled with lack of growth."
Legier & Materne's financial planning services cover six major areas: taxes, investments, risk management and insurance, retirement, estate and succession planning and education. Legier notes that with the Firm's financial planning services, the client is assured of total independence. The firm sells no financial products and receives no fees from the client's investments, so there is no conflict in the process.

Can the Family Take Over?

Eventually, all business owners begin to think of retirement and look forward to the enjoyment it promises. The owner must now face the dilemma of succession decisions. Who is to succeed? Are the children capable or interested in the continuation of the business? Should the business be sold to a qualified outside buyer or die with its founder? While succession planners agree that these questions need answers five to ten years before retirement, Legier asserts that it is never too early to begin the exit plan.
Succession decisions are often made emotionally, without carefully thinking through the results and consequences. If the family members do not process the desire, management skills, emotional maturity, interpersonal skills or business savvy to run the business, it may be appropriate to consider selling the business to an outsider.
Legier says that the Firm is very sensitive to the special needs of these family businesses. "We recruit the brightest of the bright, often at the top of their classes. We develop a supportive relationship with our clients and share our experience, competence and technical sophistication," he said.
In addition to CPA experience with a "Big 5" international firm, Legier has successfully managed multimillion dollar companies. The firm's clients range from local businesses to large multinational corporations.