If you own and operate a business, chances are you’ve thought about how you want to handle your business after you retire. However, it can be complicated to properly create and execute a business succession plan. Davidson Law Group explains this estate planning issue.
Fortunately, professional legal help is available at Davidson Law Group to ease the burden and ensure a successful business succession. Here’s a brief overview of what you need to know about family business succession.
What Is Family Business Succession?
Family business succession is the long-term process of addressing key needs for leadership within the company. It also involves preparing selected individuals for present and future business responsibilities.
Factors to Consider for Family Business Succession
Formulating a succession plan is difficult for many reasons. Conflicts may arise regarding goals, values, personalities, differing expectations, employment of various family members, compensation, and an overall reluctance to plan for succession.
To more effectively address these issues and successfully develop a business succession plan, you may want to consider the following factors as you take steps to complete the process over time:
- Your goals for your business and future
- Your family members’ goals for their own lives
- Your family members’ desires to own and operate the business
- Who you will prepare to take over leadership of the company and how you will prepare them
- Your estate plan and its effect on your family and business
- The viability of your company both now and in the future
How Can a Lawyer Help With Family Business Succession?
As you develop your succession plan, you may work with several different types of professionals, including accountants and lawyers. A lawyer can help guide your family-owned business through a successful transition by offering professional advice on many topics and issues that commonly arise during the planning process, such as:
- Disability and retirement planning
- Business tax planning
- The sale of business interests
- Dispute resolution methods
- Compensation and benefits
- Compliance with relevant laws, policies, and regulations
This is by no means an exhaustive list, and the lawyers at Davidson Law Group can help you through additional challenges and difficult aspects of a family business succession. If you’d like more information on our legal services regarding business transitions, call today to speak with a member of our staff.