Insightful Legal Counsel for Strategic Business Succession
If you are starting to think about retirement or transitioning out, then it is time to think about business succession. You can try to tackle this on your own, but an experienced business succession attorney is beneficial. Danna & Associates has the background and skills to help you plan for the future. This ensures you and your business are in the best position for a profitable and smooth transition when that time comes. Our team of attorneys and business planning professionals can help you create a plan to transition your business into its next steps while planning a successful and seamless exit for you. We provide personalized guidance to help you transfer your small business to family members, partners, or other trusted successors.
The legal team at Danna & Associates has the tools and experience to help you every step of the way during your succession plan. From logistical planning and creating a timeline for stepping away, we can help you strategically develop a plan that keeps you in the loop the whole time. Whether you are looking to close up shop, hand off the reins, or sell your business to another party, our team is ready to assist.
Shifting a Business to a Family Member
Many small business owners plan to shift the ownership of their company to a family member or close loved one. If you have more than one potential successor, choosing the person that would be better for the business is important, but no matter what choice you make, it can lead to friction. Our team can help you develop a strategy for succession, and help you make the necessary choices to ensure a smooth succession plan. If needed, your legal counsel can help you put the business in trust until your successor is of age to take control of the business. This can also include stipulations such as education requirements for your family member to achieve before a proper transition of the company.
Your Legal Team When Selling Your Business
If you plan on selling your company to another party, Danna & Associates can help facilitate a smooth transfer. Our legal counsel can work with you to ensure all necessary contracts are held up to your standards, to help ensure a secure transfer.
Key Components to a Successful Business Succession
Below are some key factors of a successful exit and transfer of a business.
Exit Strategy
Determining what will happen if and when you are no longer able to run your company is critical. This tool can help us evaluate all of the “if this, then that” scenarios. These scenarios may include how you will leave the business at retirement. Some options are winding down the business, selling to an interested party, or passing it down to a family member.
Preparing a Successor to Take Over the Business
Think about what makes a good “you” for your company. What does it take to run your business efficiently and effectively? Once you have identified those personal qualities and traits, then it is time to select a successor. This is the person you want to take over. Choose wisely.
Decide Which Route To Take
There are many different transition options a business owner can take that might depend on if they have a qualified successor selected, if they have the capital to buy the business, if the owner wants to sell to a larger company, or create an ESOP (Employee Stock Ownership Plan).
Timeline
We will craft a flexible, written timeline. It includes when you would like to retire and sell, close, or transition your company to a new owner.
Disability Insurance
Disability insurance is an essential funding consideration. It helps keep the company and your family afloat should unexpected or unforeseen events alter your succession plans. In such instances, make sure you have the right kind and amount of disability income insurance to support you and your family. Also, Key Man disability insurance can help keep the company running without your direct influence if needed.
When To Start A Succession Plan
You do not need to be 65 or older to start planning for succession. Many business-owners choose to create a succession plan in the event of untimely passing or disability. Overall, it is important to think about what succession might look like for your business, and have strategies in place to ensure a safe, smooth, and secure transfer. Working with a trusted and experienced attorney can help ensure that your business is in good hands every step of the way.
The knowledgeable attorneys at Danna & Associates Elder Law Firm Staten Island NY, won’t make a ‘one size fits all’ recommendation. Instead, we work with you to learn your specific circumstances and create the best plan for you. Our goal is to set you up for the best possible future while planning for any potential changes in your life. Contact us to get started.