Not having a business succession plan could have devasting results. It might impact the ability of the business to continue operating or the owner’s retirement income. While necessary, it is often overlooked. As every business is structured differently, a custom approach needs to be used. This is what we do.
If it is a family business, our attorneys consider whether a family member should continue to operate the business or would a valued employee managing the business be a better choice. Sometimes it is simply better to just sell the business to a third party. A buy/sell agreement is often the best way to transfer ownership and if so, tax ramifications need to be considered. Do the owners want to be involved with the daily business operations and just want to assume a continuing smaller role or do they want to fully divest themselves of the business? Often a qualified retirement plan is what should be used. There are many alternatives to consider. Our qualified and experienced attorneys have assisted numerous clients with planning for the next business generation.
A business succession plan needs to coincide with the business owner’s estate plan. We design both plans to minimize estate tax exposure and effectively transition business operations.