As a business owner, you have likely made many sacrifices and spent countless hours, days, and even years building your company into what it is today. You want to ensure its success continues, even when you are no longer at the helm. You also want your loved ones to be taken care of and provided for.
A Covina business succession planning lawyer could help you attain both goals. Our legal team understands that your company is unique and could work with you to create a succession plan that is tailored to you. Schedule a meeting with our seasoned estate planning attorneys today to learn more.
Family Succession Plans for Businesses
Many small businesses are family-owned. Some even refer to themselves with an “and family” or “and sons” in their name. These owners aim to pass down their businesses to family members. However, they need to find relatives who are interested in taking on the company and capable of handling it.
A business succession lawyer in Covina could help an owner create a transition plan and training protocol to protect the company and prepare the next generation of family members to succeed.
Selling a Business to Employees
An owner can ensure the continuity of their company by selling ownership shares to key employees. In this way, they know that essential workers who understand how to run the business will still be there to provide the same services.
An attorney could help arrange the sale to employees by creating an Employee Stock Ownership Plan (ESOP). In this plan, the company could reward employees who have been there for long periods of time with options to purchase stock in the company. Over time, these individuals could buy the business.
Selling a Business to Outside Parties
When handing down to a family member or creating an ESOP is not feasible, some business owners sell to third parties. If the company is successful, the owner could make a significant profit from the sale, which they could use to retire or move on to fund other business ventures. An experienced legal team could help a business owner set up their company to make it attractive to outside parties.
Merging a Business with Other Companies
Some business owners find it in their interests to merge or partner with another corporation. A merger or partnership with a company that complements an existing business can benefit both parties.
A business succession planning attorney in Covina could help set up a partnership that allows the original owner to gradually or immediately leave the company after the merger has taken effect.
Liquidation
If a business owner determines that no family members or employees are interested in taking over and that they would not be able to find buyers, they might elect to liquidate their company. A dedicated lawyer could help the company close its operations and divide its assets cost-effectively.
Contact a Covina Business Succession Planning Attorney Today
Just as you want to ensure that your family members are taken care of, you also want to ensure that your business continues to thrive after retirement.
A Covina business succession planning lawyer could help you decide which legal option is right for you and your company. They could review the advantages and disadvantages of each path and help you make the right decision. Call today for more information.
