You’ve worked hard to build your business, but have you thought about what will happen when it’s time to retire or something happens to you? Without a solid succession plan in place, even a thriving business can descend into chaos or even fail after a difficult transition. If you don’t have a plan in place, below are a few reasons to consult with an experienced business attorney to minimize conflict and uncertainty and develop a plan to preserve your assets in the event of disaster. 

What Is a Succession Plan?

If you’re incapacitated, pass away unexpectedly, or decide to eventually retire, a business plan allows you to choose a successor manager or owner, dictate the value of each partner’s share, or decide if the company should be sold. As part of developing a succession plan, your business attorney will also organize the company’s finances to make the transition as smooth as possible. Business interests can be transferred outside of probate if the plan so provides.

Why Are Succession Plans Important?

While you may have time to organize certain aspects yourself if you have time, such action is risky if your assets area t risk.  With the right plan, you will be ready for retirement, and prepared to deal with sudden  illness or injury which often strikes without notice. If you’re suddenly unable to run your business, family members, partners, and even employees may fight for control, potentially ruining everything you’ve built.

The situation can be even more complex if you have partners or investors who have a stake in the business. In these cases, having your business attorney include buy-sell agreements in the succession plan will eliminate stress and uncertainty. These documents outline whether a partner’s share can be sold if they die or want to leave the business, establish a price, and describe who may purchase their interest, avoiding risk and uncertainty for the other partners and your loved ones.

Since 1965, the business attorneys at Zellar & Zellar Attorneys At Law Inc have developed and implemented detailed succession plans and provided effective advice to entrepreneurs throughout the Columbus, OH, and surrounding areas. They take pride in giving every client the individual attention they deserve and taking the time to listen to and respond to their unique needs. Visit their website to learn how they can help with your succession plan. Call (614) 257-1643 to speak with a business attorney in Columbus or (740) 277-2700 to reach their office in Lancaster.

_{This article is intended to provide general information and should not be construed as legal advice or in creating an attorney-client relationship.}