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.