Do you need a business succession plan?
A business succession plan defines what will happen to the business and who will be selected to operate your business when you retire or if or when something unexpected happens to you or your co-owners. Long gone are the days of assuming one of your children, relatives, or loyal employee is going to step in to keep the business operating and profitable. Establishing a well-drafted business succession plan will help alleviate the stress associated with business transfers or sales. The attorneys at Toews Law Group, Inc. provide expert advice in business and corporate law in San Luis Obispo or anywhere in California, including the development and drafting of business succession plans.
A business succession is designed to set forth the strategic and financial decisions that should take place when there is a transition or sale of the business. The plan should address matters such as:
- Who will take over your ownership in the business and how does that impact operations?
- How the business can or should be reorganized.
- How business assets are assigned and valued.
- How your ownership share will be determined and will other co-owners have the right to acquire your interest.
- If the business is to be sold, what process will be used to determine the value of the business, who will administer the sale, and how will the proceeds be distributed.
In addition to addressing these matters, other considerations should include: - How will a sale or transfer impact your specific estate plan?
- Does your estate plan, will or trust, address the integration of the business succession plan?
What provisions need to be in the plan to ensure your wishes are carried out?
An effective business succession plan, created with the assistance of the California business and corporate attorneys from San Luis Obispo at Toews Law Group, Inc., addresses several business transition strategies, including:
- Business entity structure
- Valuation of the business
- Legal issues such as debts or heirs attempting to dispute the plan
- Tax implications
- Estate planning
- Preserving business talent
- Client relations
- Financing
- Operations
Ideally, a business succession plan should be created when the business is formed, however, if it has not yet been accomplished the time to do so is now. Also, if you have a succession plan that is a few years old, now is the time for a review.
The business and corporate experience of the attorneys at Toews Law Group, Inc. helps you wade through the complex issues that need to be addressed in a business succession plan. The attorneys at Toews Law Group, Inc., have a robust depth of experience in business and corporate law and take pride in superb customer service and fair and competitive pricing.
Contact the Toews Law Group, Inc., today for an effective business succession plan, estate plan or other business and corporate legal assistance.
