Planning for the Future: Business Succession Lessons Every PG&E Employee Should Know

Healthcare Provider Update: Healthcare Provider for Pacific Gas & Electric The primary healthcare provider for employees of Pacific Gas and Electric (PG&E) is often covered under large insurance carriers that offer comprehensive plans, including offerings from Blue Cross Blue Shield and UnitedHealthcare; the exact provider may vary depending on the employee's specific plan and regional options available. Projected Healthcare Cost Increases in 2026 As we look ahead to 2026, healthcare costs are anticipated to rise significantly due to a combination of factors. Insurers are reporting average premium increases that could exceed 20%, driven largely by ongoing inflation in healthcare services and the potential expiration of enhanced subsidies provided under the Affordable Care Act. This perfect storm of rising medical costs and diminished financial support could shock many consumers, with estimates suggesting that out-of-pocket premiums might surge by as much as 75% for individuals reliant on marketplace plans. As such, both employees and employers within PG&E should prepare for heightened expenses, taking proactive steps now to mitigate potential financial impacts. Click here to learn more

'PG&E employees who have built side ventures should view business succession planning not just as an exit strategy, but as a coordinated opportunity to align valuation, timing, and legacy goals with the guidance of qualified professionals.' — Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

'For PG&E employees preparing to transition out of business ownership, a well-structured succession plan can help preserve company value, strengthen family or management continuity, and support long-term financial goals.' — Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

1. How to prepare and structure your business succession plan.

2. Key considerations for selecting a successor and valuing your business.

3. Planning strategies (including tax-related) to support a smooth transition.

Important Business Succession Planning Lessons

Preparing for business succession can be challenging and requires thoughtful consideration of both the timing and structure of your exit strategy. For PG&E employees who have built businesses or side ventures outside of their careers, obtaining an accurate valuation that factors in both tangible and intangible assets is essential. Working with a trusted team that includes an accountant, attorney, and financial professional can help you assess the implications of an exit and establish a clear post-ownership path.

Structuring a business exit can be quite complex. 'Whether you want to sell to a third party, transfer ownership to a family member, or arrange for an employee buyout, it's essential to understand not only how to structure the deal but what the implications will be for both your business and your personal finances,' explains Brent Wolf, an advisor at Wealth Enhancement.

Selecting a Successor

Many business owners envision passing ownership to a family member. However, it’s vital to assess whether that person has the interest, capability, and experience to manage the enterprise successfully. You should also evaluate how such a transfer could affect family dynamics, especially if multiple heirs are involved.

For PG&E employees considering an alternative path, selling to an external buyer or internal management team can also be viable. The strongest option often depends on how well the business operates without the owner and whether potential buyers are confident in its ability to generate revenue after the transition. A hybrid approach—commonly used in private equity—can allow a seller to retain leadership for a transition period while receiving partial payment upfront and possibly holding equity for future growth.

Structuring the Sale

When organizing the transaction, determine whether you are selling assets, ownership interests, or both. Sale terms might include cash, promissory notes, or shares in the acquiring company. Deals frequently include earn-outs or non-compete clauses, and payments may be distributed over time. Negotiation at this stage is vital since the deal’s structure affects taxation for both parties.

Corporate buyers, including strategic acquirers, often have established procedures and preferences regarding deal structure. If the transfer involves internal successors gaining equity gradually, a mentorship or phased ownership handover may be necessary.

Assessing Business Value

Your company’s value includes both tangible and intangible elements. Tangible assets—such as inventory or real estate—are easily measured, while intangible ones like intellectual property, customer relationships, and brand recognition can represent a significant share of total worth.

Professional valuations incorporate assets, liabilities, and broader market conditions. These valuations can influence the timing of your succession plan and provide clarity on how your business compares to industry competitors. For PG&E employees planning ahead, maintaining company value is crucial—through licensing agreements, employee retention incentives, and non-compete clauses—to maintain stability and appeal to buyers.

Planning for Tax & Wealth Transfer

A substantial sale may raise your tax obligations. You can manage the impact by structuring payments over several years. Consulting an accountant or attorney early can help you explore estate planning, charitable gifting, and strategies for transferring wealth to the next generation.

If you continue to earn income from the business after the sale, factor that into your long-term plan. For many entrepreneurs, including those exiting from a PG&E environment, this phase can be both financially and emotionally significant. With thoughtful preparation, you can transition toward the retirement lifestyle you envision.

Professional Guidance for PG&E Employees

Succession planning involves tax, business, and personal considerations. The Retirement Group can help evaluate your options and develop a plan aligned with your retirement objectives. To discuss your situation or learn more, call (800) 900-5867 to connect with a financial professional at The Retirement Group.

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Sources:

• 1. Internal Revenue Service.  Publication 537: Installment Sales . Department of the Treasury, 2024. PDF file.

• 2. MacDonald, Troy, et al.  Exiting Your Business: A Guide to Valuation . Doane Grant Thornton LLP, Sept. 2024. PDF file.

• 3. IFB Research Foundation.  Planning Succession . 2nd ed., IFB Research Foundation, 2023. PDF file.

• 4. Muir, Scott, and Lisa Munro.  Handbook: Impairment of Nonfinancial Assets . KPMG LLP, 2024. PDF file.

• 5. University of South Carolina, Center for Executive Succession.  Chief Financial Officer Succession Planning Playbook . 2024. PDF file.