Business Succession Planning
No business can survive without the business owner or someone in charge to give direction. Business Succession Planning is essential if you are the owner of a family-owned business; having a plan in place when you retire or become disabled is the best way to ensure your loved ones will know how to respond when it happens. The Law Office of Steve Ortega, PLLC, will help you create a business succession plan based on your type of business to give you peace of mind when you no longer can handle those affairs.
What happens if I don’t have a business succession plan?
Without a business succession plan, an owner’s stake in the company is either passed on to relatives as part of the estate, distributed to shareholders, or a combination of both. Family disputes may occur between relatives or siblings. Those relatives who are more involved in the daily operations may feel entitled to a more significant chunk of the shares than those less engaged. In larger businesses, there could be a loss of employees or clients due to fear of instability. Sudden changes can lead to big problems, and the company could collapse. Disputes could arise between shareholders and will stall the progress of the transition and could lead to a loss of assets if a plan is not laid out if you become disabled or suddenly pass away.
With a Business Succession Plan
The Law Office of Steve Ortega, PLLC, has helped many business owners develop a business succession plan to ensure a smooth transition if they cannot handle their business affairs. The plan is based on your business model, goals, and the future of your company. A properly drafted succession plan will provide direction to the remaining business members with a procedure to follow in the event the unexpected happens. Appointing a competent successor will be able to handle the transition and follow the process. Having a plan will put safeguards in place and protect the company from loss.
Be Prepared
Business succession planning varies for each type of business. The plan is based on your specific objectives and opportunities. Proper succession planning will determine the future management and ownership of the company. The plan will outline if the business will be passed on to the family, sold to a third party, or sold with specific assets retained by the family. Contact the Law Office of Steve Ortega, PLLC, to get started on your business succession plan.
