Business Succession Planning

Family-owned businesses come with expectations for succession and emotional entanglements that can be damaging to the future of the business. Often, family members will disagree about the future direction of the business. Those most interested in retaining control may have the least amount of business savvy or may lack the work ethic to drive the business forward. For these and many other reasons, it’s important for the business owner to:

• Determine the fair value of the business
• Determine the importance of continued family involvement
• Assess the business aptitude and passion for the business among family members
• Establish goals for the owner’s retirement
• Identify the family member(s) best suited to making the business successful for the benefit of all stakeholders
• Create an ownership and control structure that balances the needs of family members with the requirements of making the new leadership successful
• Document the succession plan
• Communicate the succession plan to all stakeholders

The succession plan can be part of the owner’s will or living trust, and should employ sound estate planning strategies to minimize tax liability.

Business owners should plan for succession well in advance of anticipated retirement. This allows the new leadership to learn the business and make a smooth transition that retains customer loyalty. Unfortunately, too many owners of family business put off the inevitable, creating stress and discord as the family struggles to adjust. Our lawyers are fully equipped to turn these complex issues into simple solutions to ensure that your business is on firm footing as you plan for retirement.

Call Therrel Baisden, LLP, 305-371-5758 or contact us online, to schedule a consultation today. Our office is conveniently located in Miami, Florida.