Transitioning a business brings about a lot of uncertainty, excitement, and anxiety. As a lender, there are several questions like these top of mind. Who will be operating the business? What role will the parent generation have going forward? What does the transition process look like? For many families, these are difficult conversations and the process seems daunting. AgTransitions is a free web-based tool to aid farmers and ranchers through the process of thinking through, and writing, a transition plan.
AgTransitions walks through the various considerations business owners should have in mind as they walk through the transition planning process. AgTransitions includes tips, resources, worksheets, and a sample transition plan to aid the transition planning process. Families can add other family members or trusted advisors, like their lender, as reviewers to their plan and work together in real-time. When the plan is finished, it can be exported as a PDF or Word Document.
Although AgTransitions is not intended to replace legal counsel in the transition planning process, this resource can save legal expenses by compiling relevant information and starting the conversation before sitting down in an attorney’s office.
Having a plan in place can help a business manage risk and help smooth the transition to the next generation. For more information on transition planning, please visit the University of Minnesota Extension’s series on transfer and estate planning.