The Business Succession Planning process is designed to answer this important question. Whether you have a family business or a professional practice you need to plan for your succession. This process is designed to prepare your business to be sold or transferred to your heirs. It can be limited to authorizing people to operate your business to preserve its value for sale, to preparing your business to be transferred to your heirs in an orderly fashion. To be most effective, Business Succession Planning should be done along with your Estate Planning. This will assure that there are no gaps or omissions in carrying out your wishes.
Business Succession Planning is a detailed process that should be performed by business attorneys experienced in this process and Estate Planning. The process begins by setting your goals to keep the business in your family or otherwise benefit them. The process should not be driven by trust creation or insurance acquisition, even though these are frequently useful tools.
The process typically involves:
- Business Valuation
- Tax Planning
- Buy-Sell Agreements
- Gifting of Share Plans
- Family Trusts
- Management Buyout Agreements
- Sale to Employee Agreements and Plans
- Business Sale Agreements
- Liquidation Plans
The above assumes that the legal standing of the business is in proper form. This includes the entity being in “good standing,” having a complete record of meetings including the authorization of all acts not part of the day-to-day business of the company, and management employment agreements. It also includes a review of all contracts, leases and insurance policies. Experience indicates that many successful businesses have failed to attend to these very important matters.
The attorneys at the Greenberg Law Firm have extensive experience in these matters and can help you to prepare your business for its succession. Contact us today at 630-416-4747 to learn more.
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