Why You Need a Business Succession Plan in Place

Whether you run a small family business, are a partner in a closely-held corporation or operate your business independently, part of your responsibility is to address the question of business continuity. Unless it is your plan for the business to shut down and cease operating once you are ready to walk away, you need to have a professional, strategic business succession plan in place.  The attorneys at Cohen Fineman LLC have extensive experience in guiding organizations large and small through the steps that they need to take and the documents that they need to have in place in order to ensure that your wishes are clearly stated and a future transition is accomplished with minimal effort.

When putting together a business succession plan, the first thing that you need to do is identify your business and personal goals. Business succession plans can encompass a wide range of needs, including estate planning, taxation, retirement planning and more. By taking the time to analyze where the business is and where you want it to go in the future, you not only make an investment in your own future, but also show your continuing belief in the organization. Taking steps to put a plan in place far ahead of when it is needed will mean that assets can be transferred easily whether as a result of a planned retirement or an unexpected event, and will make things less stressful for your employees, your clients, your creditors and your customers.

At Cohen Fineman LLC, we begin our business succession planning by making sure that we have a firm understanding of the assets and documents that are already in place. It is only when we understand what will need to be reorganized, updated and transferred that we can begin drafting buy-sell agreements and addressing questions regarding disposition of assets, business preservation and protection, employee contracts, and governance. Our services include:

  • The creation of family limited partnerships or limited liability companies
  • Negotiating and drafting comprehensive business succession agreements
  • Buy-sell business planning agreements
  • Estate planning
  • Retirement planning
  • Review of existing documents

Having a well-designed business succession plan in place can make all the difference for the future value and stability of your business, as well as for all of the individuals who work there and who rely upon it. It protects against disputes between partners, family members and shareholders and provides you with a sense of confidence in the future. Without such a plan in place, family businesses face undue additional stress when an untimely death takes place, and animosity can arise between colleagues who previously treated each other with warmth and respect.  A family can face estate tax problems that can cripple them financially when assets that are tied up in a business are viewed as being part of an individual’s estate. Cohen Fineman LLC can help you to address each of these issues proactively so that these problems can be avoided entirely. Contact our office today for more information.

Learn more about how we can help you with your Business Succession Plan HERE.