Business Succession Planning: What happens to my business when I am ready to pass it on?

Written by: David W. Park and H. Robert Fischer III

Do you own a business? Do you plan to (or hope to) retire one day?  Have you ever considered what will happen to your business if you were suddenly unable to run it?

These thoughts bounce around most business owner’s heads at some point, but all too often they do not lead to action. Business owners are so heavily involved with the day-to-day operations of their business that planning for the future perpetually falls to the bottom of the “To-Do List.”  Also, quite frankly, tactful succession planning is complicated, and involves complicated questions.

The simple truth is that every business owner needs a succession plan whether it is to protect their business as a legacy to a future generation or as protection against events that are outside of your control.  Fortunately, the most difficult part is taking the first step, and we are here to help.

Below are a series of questions we ask our clients to consider pre-emptively to set a framework for the plan moving forward. Remember, focus on what you want, and consider:

• Are you planning to retire? What does retirement look like for you (i.e. a full divestiture from the company and no longer having any role in its operations or stepping back from operations but remaining in an ownership or advisory capacity—maybe even as a consultant or employee?)
• Do you intend sell your business? To your business partner? An employee? A third party?
  • What qualifications would someone need to run the business?
  • What is your company worth?
• Are you considering gifting the business interest and responsibility for operations to a trusted partner, employee, or family member?
  • Do your family members have the know-how or willingness to run it, and do you have any plans to cultivate that knowledge and encourage their interest?
• Do you want to structure a succession plan that would support family members without actually requiring them to take a role in managing the business?

Whether you need help fine-tuning a plan that you have drafted out or you need someone to help you through answering questions like those posed above, the attorneys at Martson Law Offices are here to guide you through the process. Our attorneys have experience providing these services while thoughtfully considering tax planning, business valuation, and protection from liability, with the aim of formulating a plan that fits your preferences.

Whatever your goals are, we are here to see that your succession plan fits your desires.

Robert “Bob” Fischer and David Park collaborated in crafting this post. Bob and Dave invite you to contact them or any of their colleagues in Martson’s Business Law Practice Group to assist with your Succession Planning needs.

DISCLAIMER: The information in this blog should not be construed as legal advice to be relied upon nor to create an attorney/client relationship. Please note that the reader’s or an industry’s specific situation or circumstances will vary and, thus, for example, an approach that is advisable in one industry may not be appropriate in another industry. If you have questions about your situation or about how to apply information contained in this blog to your situation or industry, you should reach out to an attorney.  The views expressed in this blog are those of the individual author and do not necessarily reflect the views of the firm or the firm’s clients.