Business succession planning is defined as logistical and financial decisions about who will take over your business upon retirement, death, or disability. To write a succession plan, the first step is to identify the ideal successor to take over the business, then determine the bestselling arrangement.
You have worked hard to establish a business, and as a business owner, you are always planning your next move. At some point, you will no longer be involved in the business. Maybe you want to retire and walk away on a particular date. Perhaps you want to cede day-to-day operational control and sell your ownership interest.
Then again, you may prefer to run the business until you can no longer physically be able to do so. Whatever the case, it is critical to have a sound business succession planning in place. Our experienced legal team will work with you to understand the unique dynamics of your business and establish a responsible business succession plan to fit your needs.
Business succession planning is a complex process, and every business is unique. There is no “one size fits all” solution to winding up or transitioning a business. We understand that, like you, your business is unique.
At Altman & Associates, the four most important goals of business succession are establishing:
To understand how to formulate a plan for business succession, start considering the answers to several important questions, including:
Selling your shares or ownership interests to a co-owner(s)
Passing ownership interests to a family member.
Selling your business to a key employee.
Selling your business to an entrepreneur outside your organization.
For a business with multiple owners, you can sell your ownership interests back to the company, then distribute to the remaining owners.
For a business owned by a several individuals, such as members of a family, business succession involves planning proactively for the transition to new management and to new controlling ownership after the senior or majority owners and managers die, retire, or become disabled.
We use legal tools or methods such as life insurance arrangements, recapitalizations, buy-sell agreements, non-competition covenants, stock options and restricted stock awards to key employees, and deferred compensation arrangements to advise and assist our business succession planning clients.
Business succession planning is not an all-or-nothing proposition and can be done in incremental steps over a period of months or years.
At Altman & Associates, our attorneys provide the trustworthy guidance you need to determine next steps for your business and your future. We will help you answer the questions above and come up with innovative, personalized solutions to protect your life’s work. Contact us by phone at (301) 468-3220 or online to schedule a meeting at one of our convenient office locations in Maryland, D.C. or Virginia.