Business Succession Plans Lawyer Charlottesville, VA
In the event of an untimely event involving an owner, partner, key team member, or shareholder, a business should have a business succession plan in place. This plan can avoid confusion over proceeding roles, as well as prevent any dispute from happening. Our Charlottesville, VA business succession plans lawyer can help your company set this plan up. Call our firm now to learn more.
Should any key member of a business become incapacitated, die, or retire, a business can become vulnerable. Regardless of how big or small a business is, a thoughtfully prepared business succession plan should be ready to go.
Selling Your Business to a Co-Owner
If you built a business with a single partner, you might choose to designate them as a successor. Many partnerships will agree early on the intent of the surviving owner to take over the business from the deceased partner’s next of kin in the event of an unexpected death.
An agreement like this can ease any burdens that might arise during the transition of the business. A business formation lawyer Virginia offers can help to ensure the family of the deceased partner receives fair compensation while the co-owner retains the control of the business.
Passing the Business to an Heir
When you have family members working in the company, you should think about who will gain control of it, especially if there are more than one member involved. You will need to have a plan that clearly details your wishes; such as, who will control what, how any other heirs are to be compensated, and what may or may not be acceptable. As a business succession plans lawyer in Charlottesville, VA, we frequently create plans that include a buy-sell agreement. These are intended for heirs to be able to sell their shares to active members.
Selling the Business to a Particular Employee
Perhaps a co-owner or family member cannot take control of the business. In this case you might consider selling it to a certain employee. For example, you might know of an employee who is business-savvy, knowledgeable, and respected by staff. If this is an option, a business succession plans lawyer in Charlottesville, VA can help you to draft a plan that might include a buy-sell agreement, the ability to manage the business while you are alive or working, and more. By making this decision now, you can leave time for familiarization, training, and planning to take place.
Selling the Business to an Outside Party
Selling a business to an outside party can be a practical idea for certain businesses. For example, a restaurant or accounting firm might be easier to sell outright. It will be up to you to demonstrate that the business is a smart investment. Other businesses, such as those that are branded with your name, might be more difficult to sell. A potential buyer might not be willing to pay your asking price because they know they’ll need to make significant marketing efforts. In either situation, you should prepare your business for sale in advance. For example, training your general management and team, organizing the business finances, and more. A business succession plans lawyer in Charlottesville, VA can help you to do this.
Dale Jensen, PLC,: Respected Business Lawyers in Virginia
A business succession plan can ensure a smooth transition of your business. If you would like to know more about these plans, call a business succession plans lawyer in Charlottesville, VA today.