Business Succession Planning
The Fernandez Law Firm offers comprehensive business succession planning services to business partners as well as family-owned businesses . A business succession plan guides transitioning of the business to the next ownership or leadership, whether that be next generation family members, employees with leadership potential, or purchasers of the business via a Buy/Sell agreement.
Some common events that trigger the necessity of a business succession plan are an owner’s: death, disability, retirement, or an owner leaving the company for any reason.
In the case of transitioning the business to family, it may involve gifting of the business (or share in the business) to one or more family members, or a structured buy out of the family business to meet estate planning objectives and continuing financial benefit for the seller as required.
In the event of an owner’s death, family members may have the opportunity to establish a business continuation partnership by funding the buyout with life insurance, and thus minimizing the tax consequences of the buyout.
Each family and business scenario is unique and the appropriate succession plan is dependent on the family and business requirements.
When a business sale involves a non-family purchase, a buy/sell agreement is necessary to ensure that the selling member(s) receive fair value for their interest in the business.
There are several scenarios and variables that can complicate the business succession planning process. The Fernandez Law Firm has years of experience and professionalism in in assisting clients with business succession planning. Call the Fernandez Law Firm for a free consultation.