Do you have a succession plan in place for your business?
It is important to understand your options when you are looking to step away from your business.
Navigator Law is here to help guide you through your options in a tax-efficient manner.
contact usClick Mecontact usA succession plan is a form of exit plan for what will happen when a business owner or shareholder transitions out of their current business involvement.
This plan can cover a couple of different scenarios:
It’s never easy to think about a day where you are unable to continue the business. Succession planning can be an emotional and complicated process, but a trusted advisor such as a business lawyer can help you navigate the process.
When putting together a succession plan, there are also many financial, legal, tax, and family aspects to consider. It is key to get good legal advice during the process to ensure you have considered all aspects of a successful and painless transition of your business.
Whether you are a sole practitioner or you own a small business, a family business, or are a partner in a larger organization, taking the time to draft a good succession plan is equally important.
Sometimes, unexpected life events can occur suddenly. Without a plan in place for what will happen with your business after you exit or your life circumstances change, conflicts and confusion can arise.
A well thought out plan is a great way to ensure business continuity and to maintain good business and client relationships.
Creating a succession plan is a sound investment that can prevent any problems in the future and that gives you, your business partners, and your family peace of mind.
A thorough succession plan incorporates many different legal services and aspects. At Navigator Law, LLP, our experienced lawyers can draw from many other areas of law such as business law, estate law, family law, and real estate law to ensure you and your business are set up well for the future.
When developing your succession plan, we will usually consider the following aspects.
At our law practice, we will take your unique business and personal circumstances into consideration when discussing succession planning. That way, your interests and perspectives of your family members, your business partners, and your clients’ interests are included in your succession plan.
Depending on your business circumstances, there are a number of ways you can exit your current business involvement.
Good communication is vital for a successful business succession plan. You might have wishes for who takes over your business when you exit, but that doesn’t always mean they are prepared for the transition.
Grooming your successor and adding additional management resources might also be part of the business and succession planning. Often, the founders of a business are exceptional rainmakers. You want to ensure that your successor has a solid foundation for continuing business growth and leadership.
In preparation for exiting the business, we can help you consider the many aspects of the actual business transfer. Those may include the following practice areas:
If a business transfer is imminent, Navigator Law can also help guide you through the process.
To get started on succession planning, contact our law firm today to set up an appointment.
When should I start creating a succession plan?
As soon as possible! Personal injury, incapacity, or even death can happen at any time, so it is best to start succession planning early.
What is a Business Owner's Will?
A Business Owner Will outlines what happens with your business and business assets after you pass away. A business owner’s will might be a good fit if you own a small business, but a living trust is sometimes a better option.
A Business Owner Will does not replace a thorough succession plan, but it might be a part of it. A succession plan includes many other practical, legal, and financial considerations in addition to the transfer of assets.
Should I have a succession plan for my small business?
Regardless of the size of the business, it is a good idea to plan for the future with a succession plan. There might be many practical and legal considerations you have to consider to ensure you and your successor are set up success.
