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Helping Business Owners Create Custom-Made Plans to Safeguard the Future of Their Businesses
If you are a business owner, you have worked hard to ensure your company’s future. However, small, or family-owned businesses often fail after the business owner’s death due to a lack of planning. In many instances, family members who try to take control of the business are unfamiliar with the day-to-day operations or management duties, causing challenging issues.
However, business owners can safeguard their assets and years of hard work by creating custom-made business succession plans that provide a roadmap for the next generation of owners.
Contact Venerable Law of Tampa Bay, FL, to schedule a free initial consultation to learn how we can assist you with business succession planning.
Why is Business Succession Planning Crucial?
Anyone who has worked hard to establish a successful business must have a succession plan that will act as a roadmap for how ownership will change hands after retirement or death.
A well-crafted business succession plan will ensure the transition process goes smoothly and that certain issues, such as retention planning and stock transfers, are planned well ahead of time.
In the case of small businesses, owners must start planning well ahead of time to guarantee that when the time comes to pass the reins on to their successors, they have all of the tools they need to be successful.
For example, family members are often labeled as co-owners but still need years of training to take over business ownership successfully. In addition, a well-thought-out plan can provide guidance so that all members of management and shareholders understand their future roles and their rights and responsibilities.
If you are still deciding why business succession planning is essential for your company, contact Venerable Law of Tampa Bay and ask to schedule a free case evaluation so that we may answer your questions.
What Essential Aspects Must Be Considered When Creating a Business Succession Plan?
Several vital aspects must be addressed to ensure the feasibility of a proposed business succession plan. However, because every business is different in how it runs its day-to-day operations, any planning must address the organization’s unique needs.
Some essential aspects to consider when creating a succession plan include:
- Identify family members, co-owners, or vital employees who may be interested in running the business when the owner decides to retire or is no longer able.
- Assess all interested parties’ skills and capabilities and how they could benefit the business.
- Identify integral positions and areas within the business that would need assistance to ensure a smooth transition when the time comes.
- Implement training and mentoring programs that provide the necessary information and skills needed for whoever is chosen to run the business.
- Evaluate the effectiveness of the succession plan and make changes, as necessary.
Anyone considering creating a business succession plan must hire an experienced attorney to assist them and help them determine how their company will need to plan to continue thriving. At Venerable Law, our business attorney has been practicing for over 24 years and has in-depth experience crafting high-quality succession plans.
What are Business Buy-Sell Agreements?
Buy-sell agreements are often used to transfer ownership of a business in the event of the owner’s death or retirement. Furthermore, a buy-sell agreement (BSA) can be used for any type of business entity and is legally binding.
Utilizing a buy-sell retention plan is an excellent resource to help ensure a smooth ownership transition. The retention plan requires that the deceased partner’s shares be sold at a predetermined price using a valuation mechanism agreed upon by partners and shareholders involved in the business.
The premise of buy-sell retention planning is that it offers essential employees or shareholders what is known as “first refusal” or the ability to accept shares before they can be offered to third parties outside the business.
In other instances, a family member or other partners may use the proceeds of a life insurance policy to pay for the deceased’s interest in the business. Without retention planning, a shareholder could quickly lose his or her stake in the business if disputes arise between surviving family members or other shareholders.
Venerable Law has a proven record of assisting businesses in planning for their future using various legal resources to benefit heirs and stockholders. For more information on how we can protect your business interests, contact our Tampa Bay law offices to schedule a consultation.
Why is Your Business Succession Planning Lawyer the Right Option for My Legal Needs?
Venerable Law is passionate in its commitment to helping business owners successfully plan for the future. We recognize that you do not want your legacy to be lost after you decide to retire or pass away.
However, business owners must be aware even successful businesses can falter without a solid succession plan established early on. Our legal team understands that every business has different needs. As a result, our business succession planning attorney takes time to thoroughly evaluate every case and determine what legal strategies suit our client’s needs.
We can also provide services that help with estate planning so that you can ensure that your family members have the funds to buy your share of the company. As discussed previously, this can be done through buy-sell agreements and funded through life insurance proceeds.
Regardless of your business needs, our law firm can help give you the peace of mind you deserve, knowing that your hard work will not be lost after retirement or death.
If you want to create or learn more about the advantages of a business succession plan, contact our Tampa, FL, law office at 813-680-4530 and ask to schedule a free no-obligation case evaluation to determine your legal options.