Business Succession Planning
Transferring your business to good hands
We work with business owners to create a plan of action to secure their business in the event of a transition in ownership or control. Whether you are a large corporation or a small, family-owned business, we can provide solutions for transferring control of your business to the next generation of leadership.
Preserving customer goodwill with a well thought-out transition plan
We understand how hard entrepreneurs must work to build their businesses, and we work equally hard to protect the gains you’ve made as you transfer your business to new leadership. Whether you are transitioning your business to a trusted family member or to an outside buyer, it’s important to retain the goodwill and loyalty of your customers and shareholders. Continuing goodwill can preserve the value of the business for new leadership and ensures continued strong revenue. We can help you put together a transition plan suitable for your business that allows customers, trade partners, suppliers, lenders, and investors to become comfortable with the new leadership before any major changes occur.
Special considerations for family-owned businesses
Family-owned businesses often come with expectations for succession and emotional entanglements that can be detrimental to the business and, unfortunately, damage family relationships. Often, family members will disagree about the future direction of the business. In some instances, those most interested in retaining control may have the least amount of business savvy or may lack the work ethic to continue to drive the business forward. For these and many other reasons, it’s important for the business owner to work with a competent advisor to:
- Determine the fair value of the business
- Determine the importance or viability of continued family involvement.
- Assess the business aptitude and passion for the business among family members.
- Establish goals for the owner’s retirement.
- Identify the family member(s) best suited to making the business successful for the benefit of all stakeholders.
- Create an ownership and control structure that balances the needs of family members with the requirements of making the new leadership successful.
- Negotiate and document the succession plan.
- Professionally communicate the succession plan to all stakeholders.
The succession plan should also be integrated and employ sound estate planning strategies to avoid probate and to minimize tax liability.
It’s never too early to plan
Business owners should plan for succession well in advance of anticipated retirement. This allows the new leadership, whether family or someone else, to learn the business and make a smooth transition that retains customer loyalty. Unfortunately, too many business owners put off the inevitable, creating stress and discord when that time comes. We are fully equipped to turn these complex issues into simple solutions to ensure that your business is on firm footing as you plan for, and eventually enjoy, your retirement.
Contact an experienced lawyer today for your business succession planning
It’s difficult to step aside from the business you built. But since that day must come, why not make the transition as uncomplicated as possible? Call us today to schedule a consultation.