Most business owners in Wheaton do not want to think about business succession. When the company is doing well, they are focused on growing the operation to take advantage of opportunities. When business is slow, they are working to find solutions. Retirement may seem like a distant dream. Meanwhile, the possibility of suffering a setback that leaves you unable to manage your business is too much to contemplate.
These situations give you all the more reason to contact a Wheaton business succession lawyer. Spending a small amount of time preparing now could save your company costly disagreements, uncertainty, and delays in a future that will one day become the present.
An estate planning lawyer who understands the complexities of business succession could review your situation, help you define your goals and the decisions you will need to make, and put a plan in place to provide for a smooth transition, regardless of what the future holds. An attorney could also fight to protect your interests if conflicts arise during a business transition.
Some business owners plan to retire at a certain point or to reduce their role in day to day operations. No one plans to suffer an illness or disability, but it happens. A Wheaton business succession lawyer could assist with a variety of planning tools that could help:
Preparing a plan for succession could help ensure that the money and effort invested in a business are protected regardless of what happens. Tax planning, liability exposure, and asset preservation are some of the many issues that may need to be addressed in the plan for succession.
To help with smooth transitions, a Wheaton business succession lawyer may use different types of agreements tailored to fit the circumstances.
A buy-sell agreement, sometimes referred to as a buyout agreement, is a contract that specifies what might happen with the business when a partner needs or wants to exit the business. This legally-binding agreement reallocates that partner’s share of a business, providing guidelines regarding who may buy into the company and how the transition should be performed. This allows a business to continue to function if one partner needs to step down suddenly. It could also provide the tools to handle the addition of new partners or retirement of a current partner.
A buy-sell agreement should establish a means for valuing the company and the owner’s interests. It should also specify who may buy-in and how a sale is to be funded.
In many situations, it is wise to have a member-shareholder agreement in place to handle issues that could arise in the future. For instance, this type of agreement could specify that disputes should be handled through mediation to avoid the delays and expense of litigation. Shareholder agreements protect the rights of shareholders or members through provisions such as a right of first refusal to buy another shareholder’s interests.
Ideally, it is wise to plan for business succession at the time of forming a new company, but a Wheaton business succession lawyer could help at any point in the process, even when a transition is already in progress. Working with an experienced business succession attorney could help you remain in compliance with legal requirements, keep aware of tax implications, and resolve conflicts with efficiency.
Delays often prove costly, so it is wise to begin working on a business succession issue as soon as possible. For a consultation to learn more about the advantages a business succession lawyer could bring to your company, call now.