Failing to develop a business succession plan may have devastating outcomes for both the business and its owners. It could impact the ability of the business to continue operating or the owners’ retirement income. While essential, it is often overlooked or procrastinated. As every business is structured differently, a unique approach needs to be taken.
If it is a family business, our business lawyers help our clients with difficult decisions such as whether a family member should continue to operate the business or if key employees managing would be a better choice. Perhaps it is simply better to sell the business 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 which should be used. There are many varied options to consider and decisions to be made. Our experienced business law attorneys have assisted numerous clients with planning for the next generation of their closely held business.
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.