Business Succession
Planning for What Comes Next
Building a successful business takes years of hard work. Business succession planning gives you the opportunity to decide what happens to your business when you retire, become unable to work, or die, and helps protect the business you have worked hard to build.
If you have business partners, establishing clear buy-sell terms can help determine what happens when an owner leaves the business. These terms can address events such as retirement, disability, death, or an owner's desire to sell their interest. They can also establish who may purchase the departing owner's interest, how the interest will be valued, and how the purchase will be funded. Depending on the type of business, these terms may be included in an operating agreement, partnership agreement, or other business agreement.
Business succession planning should also be coordinated with your personal estate plan. Your business interest may be one of your most valuable assets, and your estate plan should address who will receive that interest and how it will be managed. Depending on your circumstances, a business interest may be transferred to a family member, business partner, trust, or other successor. Coordinating your business agreements with your estate plan can help ensure that your wishes are carried out and minimize disruption to the business.
Business succession planning doesn’t end with deciding who will take over the business. Your business plan and personal estate plan should work together to ensure your ownership interest is handled according to your wishes. Depending on the type of business and your goals, this can include buy-sell terms in an operating or partnership agreement, member control provisions, and provisions in your estate plan addressing the transfer and management of your business interest.
Estate Planning & Probate Administration
We would love to help you with your estate planning and estate administrative needs.
Coordinating your business with your personal estate plan is important! We have launched a focused estate planning and probate firm, Cooperative Will & Trust. This allows us to better serve clients by dedicating distinct teams and resources to business law and to estate planning and probate, all under the same leadership you already know and trust.