What is business succession planning?
A business succession plan outlines what will happen and who will take over your business when you leave whether by choice or by circumstance. The aim is to provide the business with a smooth transition so that disruption is minimized.
Process of succession planning
Each business is different of course but you will likely need to consider:
- Goals and objectives of all parties
- Do you require an ongoing income from the business?
- Will you have any future involvement in the company?
- Who is interested in taking over?
- What impact will there be on all members of your family?
- Identify your potential successors
- Objectively assess their capability needs commitment skills and experience
- Consider all the angles
- Minimizing tax for you and your family and remaining partners
- Retirement income planning
- Financial implications of business transfer
- Contingency planning
- What will happen in the case of catastrophic injury or death?
- Corporate structure issues
- Define roles and responsibilities of current family members and employees
- Business valuation
- Plan to increase the value of the business particularly if it is to be sold
- Exit strategy
- What are the training or mentoring needs of your successor?
- How will you exit and by when?
We can help
These are complex issues spanning legal, financial and management arenas. We can help make sure you have covered all bases.
Contact us to arrange a consultation with an experienced business succession lawyer in Tulsa.