Davidson Law Group Discusses Business Succession Planning
A business succession plan set up by a business law attorney at Davidson Law Group provides the owner or partner of a business with a proper exit strategy that does not compromise the success of the business.
In today’s blog, the experts at Davidson Law Group look closer at the topic and offer some tips on business succession planning.
It’s not a good idea to put off succession planning until you’re near retirement; rather, you should make it a part of your business strategy. A comprehensive succession plan shouldn’t be considered an end at all, because it’s actually the beginning of the next phase of your business. It takes an average of five years from start to finish to execute a succession plan, so it’s good to get a start on the process early to ensure a transition of leadership goes smoothly, and your business, clients, and staff have enough time to adjust.
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Put it in Writing
Just like any other element of business strategy, your succession plan should be formally documented and legally binding. By writing your plan as a legal document, you won’t only ensure that everyone is aware of your objectives and goals for succession, you’ll create a roadmap for the company’s future success. Documentation is especially vital when it comes to ownership transfers.
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Include Stakeholders in the Process
When a business changes hands, some people are bound to get nervous. That’s why it’s a good idea to open up a dialogue with all of the stakeholders affected by the succession. Obviously, if there are partners involved, succession should be a joint decision. Beyond that, you might wish to consider your company’s leadership team in the decision-making. If your top-level staff is not isn’t considered or allowed input, the succession may be mired in conflict.
Work with an Advisor
Succession will undoubtedly have a major impact on your business, potentially involving reorganization or potentially selling the business. It’s important to consult with a trusted advisor who can offer professional advice about how to best proceed. A succession plan will entail detailed legal and financial actions, so you should select an advisor who has expertise in those areas and can bring in a team to work with you.
Let Davidson Law Group Help
If you are ready to begin business succession planning, contact the Davidson Law Group in Fort Worth, Allen, or Tyler. Our experienced business law attorneys will guide you through every step of the process, ensuring your business is set up for success.