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Owning and operating a successful business is a significant responsibility. Along with the day-to-day operations, there are other matters that a conscientious business owner must consider, such as who will act as their successor in the event they become incapacitated, die, or retire. Proper planning considers the succession of both the ownership and the management of an organization.
A comprehensive succession plan is a wise safegard to have in place to protect the business, its investors and employees. At Katz Baskies & Wolf PLLC, we are attorneys well-versed in creating business succession plans that balance the needs of the business and its owners. We are also well-versed in coordinating business succession planning with a client’s estate planning needs.
Elements Of A Successful Business Plan
While every business is unique, there are some elements of an effective business plan that are seen more frequently than others. This includes:
- Ownership Succession: Business partners often rely on the acumen and financial capacity of one another. A successful plan requires consideration of who might fill those roles if one of the partners should die or become incapacitated.
- Business Valuation: After an emergency occurs is not the time to worry about how much a business is worth. Owners of businesses should consider the methodology by which a business interest shall be valued in the event that a buy-out is part of an agreement.
- Determine How Succession Will Be Funded: How will the succession of ownership in the company be financed? There are different ways this can take place, including insurance, notes, internal funding, and additional equity from co-owners. Each of these methods have their own, distinct corporate, tax and practical considerations.
- Matching a Plan to the Structure: A change in the ownership or management of a business may have different planning considerations depending on whether the entity is a corporation, limited liability company or partnership. Successful planning requires a broad knowledge of the tax and corporate laws that govern each of these types of legal entities.
Protect Your Investment With A Business Succession Plan
At Katz Baskies & Wolf PLLC, our legal and practical business backgrounds assist in implementing the desire to protect the results of the considerable time and resources you have invested in your business enterprise. We know that you have worked hard to create and maintain a successful business, which is why we take pride in crafting a succession plan that brings you peace of mind. Contact our office to learn more regarding how we can assist you in protecting your business with a succession plan.