Failing to develop a business succession plan may have disastrous results. It could impact the ability of the business to continue operating or the owner's retirement income. While essential, it is often overlooked. As every business is structured differently, a unique approach needs to be taken.
If it is a family business, our business lawyers consider whether a family member should continue to operate the business or would key employees managing be a better choice. Perhaps it is simply better to sell it to a third party. Is a buy/sell agreement the best way to transfer ownership and if so, what are the tax ramifications? Do the owners want to be involved with the daily business operations and just want to assume a continuing lessened role or do they want to fully divest themselves of the business? Perhaps a qualified retirement plan is a vehicle should be used. There are many options to consider. Our qualified and experienced business law attorneys have assisted numerous clients with planning for the next business generation.
A business succession plan needs to dovetail with the business owner's estate plan. We craft both plans to minimize estate tax exposure and smoothly transition business operations.