ARTICLE: Family Business Succession Planning Protects Your Legacy

Family Business Succession Planning Protects Your Legacy

Owning and operating a family business comes with all the challenges and rewards of any business, but with the additional dynamics of family relationships. While all businesses should have a succession plan, they’re especially important for family businesses.

A business succession plan is the legal document that passes control of the business to a new leader when the existing leader is ready to retire, as well as if the leader becomes incapacitated or passes away. Losing key leadership without a succession plan in place can throw a business into a tailspin with a devastating impact on the family members and employees who depend on that business for their income.

“Later” always comes, whether you’re prepared or not.

Because a business can operate effectively day-to-day without a succession plan in place, many owners often put off the task until “later.” And because designating a successor-leader in a family business means making a choice among children or between children and non-family successor, families often put off making this choice for fear of upsetting their families or making the wrong decision. But having a business succession plan in place is critical.

Protect the business you’ve worked hard to create.

Business succession planning protects your business’s financial future. A business succession plan is not one size fits all. It must address all the unique needs of both your business and your family. The document planning process should include discussing:

  • Timing of planned transitions 
  • Leadership candidates
  • Business valuation
  • Tax considerations and strategic planning
  • Buy-sell agreement
  • Family estate planning
  • Contingency planning

Get peace of mind.

A business succession plan gives your business a way to continue forward when you are no longer leading the business, whether that departure is planned for a certain time or unplanned and sudden. It facilitates the change in leadership, providing the best possible chance for business continuity and, therefore, success. With a business succession plan in place, you’ll have some control over ongoing operations and protect your family and loyal employees.

We can help.

If you lead a family business and don’t have a business succession plan in place or if want to review your existing plan, call Roth Elder Law PLLC  today to schedule an initial meeting at 607-962-6162 or complete this intake form and we’ll be in touch.

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We at Roth Elder Law, PLLC, believe in providing services in a way that clients can easily understand and meaningfully participate in designing and maintaining their estate plan for their loved ones, as well as be assured that their plan will be administered according to their wishes.