Helping Your Business Thrive in the Future
Are you ready to exit your business, but unsure how to do it and how to get maximum value for what you’ve built? Can your company survive without you?
Who knows and cares about the business as much as you do (or at least enough to keep the business successful)? Are they willing and able to step up and take the company forward? Is internal succession better for you, or an outright sale to a third party?
The exit of an owner or shareholder can be a proud moment, knowing you’ve built something that will continue on after you. Or it may be about a big payday, and the end of a great run. Planning for this next stage of your life may have more “moving parts” than your startup did. Then, if necessary you could find a way to improve or fix mistakes as you went along. But you’re likely to get just one shot at your actual exit. It’s a challenging situation that the business planning team at HighPoint Law Offices can help you progress through.
Without a Plan
Without a succession plan, your stake in the business will be either absorbed by other shareholders or distributed to beneficiaries as part of your estate.
- If the business is family-owned, those more involved in the company may feel entitled to larger shares than others who are less involved, leading to damaging disputes.
- Employees and major clients may be tempted to leave, concerned about the company’s future stability.
- Remaining shareholders may not have the resources needed to purchase your shares. If one of your beneficiaries consequently becomes an owner, it can cause disputes, stall progress, and possibly lead to asset loss.
- Without a written plan in place, your deceased partner’s widow (or husband) may automatically be your new partner, a situation that probably neither of you wants.
With a Plan
A business succession plan that meets the unique needs of the company can facilitate a smooth transition after you leave. Attorney Peter Gilbert and the team at HighPoint Law Offices will help you develop a plan that accomplishes the following, depending on your goals:
- Keeping the business or your shares within the family if that is your wish.
- Have in place an agreement that sets up the rules and the funding needed on the exit, disability, or death of a partner.
- Offering shareholders and key employers a larger stake in the business. This includes a right of first refusal before your shares are made available outside the company.
- Determining share prices using an agreed-on valuation mechanism, such as current market value.
- Empowering advisors to assist the transition team, provide for heirs who are not directly involved in the business, and support family members and key employees who will take over the company.
- Transferring your interest into a trust that can be paid out to family members.
Set Up Your Business Succession Plan Today
With so many factors to consider, consulting an experienced business planning attorney can help you make the right decisions for your business and its future. To schedule a consultation, please contact HighPoint Law Offices here.
