Business Succession Planning
Your business is meaningful. It provides support for the people you love and for the people it serves. If you want to see it continue to provide that support beyond your lifetime, you have to have a business succession plan in place.
Our Approach
As an entrepreneur, a heavy thought in the back of your mind is probably how to pass down your legacy – how to stay true to what matters most to you, your family, and your work in the world.
The reality is that after you are gone or in the event of your incapacity, your loved ones, your family, your business partner, your clients, your vendors, and everyone you work with will miss you deeply. Your business needs to be able to go on to support them.
You will either leave them with a business that is meaningful, easy to manage, easy to sell, and keeps supporting them – or you will leave them with a big mess to deal with.
Time and time again, this issue is overlooked by business owners and business lawyers serving their business owner clients
Not here.
Whether you have a new business or an existing one, we help you shore up your legal, insurance, financial, and tax (LIFT) foundation with the right agreements, insurance, intellectual property protections, and financial systems so that your day-to-day runs smoothly and helps you sleep better at night.
Then we shift the conversation to the biggest question of all: the all-important exit (and there is always an exit, either voluntarily or involuntarily).
We will have an ongoing conversation throughout your life and the life of your business, exploring together what can we do today to ensure your business can and will continue to serve you and your clients no matter the situation. You will go on vacation, take a health break, perhaps become incapacitated, and pass away. You will know exactly what happens to your business in any of those events.
Why Business Succession Planning Matters
Succession planning is more than just naming a successor; it's about safeguarding the continuity of your business amidst unforeseen circumstances. Whether you are preparing for retirement, contemplating a merger or acquisition, or safeguarding against unexpected events, we offer tailored solutions that align with your business objectives and protects your legacy. Our proactive approach has been adopted so that your succession plan evolves with your business, adapting to changing circumstances and legal requirements.
Ownership Transfers: Secure the transfer of ownership rights while minimizing tax implications and preserving the business's financial health through strategies like Buy-Sell Agreements.
Leadership Transition: Identify and prepare future leaders within your organization to maintain operational excellence and uphold your company's values.
Estate and Tax Planning: Implement strategies to mitigate estate taxes and ensure your business assets are efficiently transferred to beneficiaries.
Don't Let Your Business End Up A Statistic
60%
In Lost Sales After a Business Owner Dies
You as the business owner are the glue that holds your business together. Without a solid plan in place for your business to outlive you, you can expect sales to dip by at least 60% after you pass. Your family and your business likely cannot weather such a downward swing.
25%
Of Business Owners Successfully Leave Their Business to Their Family
Sadly, of the two-thirds of small business owners in the U.S. who want to pass their business to their family, only about a quarter of them are actually successful. The other 3/4 simply did not do the right planning, or any planning at all.
100%
Of Business Owners Stop Being Owners Eventually
Simple Fact
We know that you will exit your business, but what we do not know is exactly how or when that will happen. When it does happen, it could compromise the whole financial foundation you have built, unless you have done proper planning so you can sleep at night.
Frequently Asked Questions About Business Succession Planning
What is business succession planning?
Business succession planning is the process of preparing for the orderly transfer of ownership and management of a business to new owners or leaders. It ensures continuity and minimizes disruptions in the event of an owner's retirement, death, or other unforeseen circumstances.
Why is business succession planning important?
Business succession planning is crucial for preserving the value of the business, maintaining operational stability, and ensuring a smooth transition of leadership. It protects the interests of stakeholders and minimizes uncertainty during periods of change. If you die without a business succession plan, your family may be locked out of your business accounts or unable to service any of your clients. If your family is relying on the revenue from the business, this can have devestating consequences.
When should I start planning for business succession?
You should start planning for business succession as early as possible! Ideally, succession planning should begin years before it's needed, allowing ample time to identify and groom successors, implement strategies, and address any unforeseen challenges.
What are the key elements of a business succession plan?
Key elements include identifying potential successors, creating a buy-sell agreement, establishing a timeline for transition, addressing tax implications, and ensuring proper estate planning. Each plan is customized to fit the unique needs of the business and its stakeholders.
What is a buy-sell agreement and why do I need one?
A buy-sell agreement is a legally binding contract that governs the transfer of ownership interest in the event of an owner's death, disability, retirement, or desire to sell. It helps ensure a fair and orderly transition of ownership while protecting the interests of all parties involved - especially if you have business partners.
What role does estate planning play in business succession?
Estate planning is essential in business succession to address tax implications, protect assets, and ensure the smooth transfer of business ownership and control upon the owner's death. It involves creating wills, trusts, and other legal mechanisms to manage and distribute assets effectively.
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5 Steps to Create Your Own Estate Plan (for Free)
If you are not worried about probate and you are confident that there will not be conflict amongst your friends, family or other loved ones if you become incapacitated or when you die - you may be able to DIY your own plan. In this e-book, we've provided resources on DIYing your own plan.
Secure your financial future. Contact Joiner Law Firm for asset protection planning.