Business Succession Planning
Why Business Succession Matters
Succession planning can be as critical to the business as any other aspect of running the business. For over 25 years, our attorneys have served a diverse client base of small and medium-sized businesses, and we have seen the impact of no business succession planning.
Events such as a key person’s sudden death, illness, or retirement, often leave businesses scrambling to find a suitable replacement. A proper succession plan can be developed to avoid a chaotic transition by working with a business succession planning attorney.
As an owner or shareholder of a privately held company, absent a succession plan, your stake in the company is either passed on to relatives as part of the estate, absorbed by other shareholders, or a combination of the two. This can lead to disputes between siblings and other relatives in a family-owned business or disputes among shareholders.
Other issues include employees and clients leaving the company for fear of instability. Another problem is whether remaining shareholders have sufficient resources to purchase the shares of the exiting or deceased shareholder. The result can be a spouse or child of a deceased shareholder attaining an ownership stake in the company, which they may not want. Such a result may also be detrimental to the successful running of the company. This is especially of concern if the exiting shareholder was involved in managing the company.
How We Can Help
The Law Office of Michael Paul, PLLC, helps owners and shareholders formulate a business succession plan that benefits both the exiting shareholder and the company. Our Business Succession Planning Services fit your business and typically addresses the following goals:
- For a family-owned business, keep the business or shares within the family. With such a plan, a spouse, children, or other relatives can retain control of assets.
- Make provision for shareholders or vital employees to take a larger stake in the company. Such interested parties could be granted the right of first refusal or the ability to accept or reject the shares of the exiting or deceased owner before they are offered to individuals outside of the company. An agreed-upon valuation mechanism can determine share price.
- Evaluate your succession plan as it relates to your estate plan and help minimize potential estate taxes.
- Your business succession plan also can empower advisors to assist the transition team in ensuring continuity, oversee day-to-day operations, make provision for heirs who are not directly involved in the business, and provide education and training to family members and key employees who will take over the company.
Searching for a business succession planning attorney in Raleigh, Wake Forest, Rolesville, Youngsville, Louisburg, Knightdale, or Zebulon? Contact us today to schedule a consultation.