Business succession planning is an important process to engage in when creating your own company. This is because in the future, you will need to have plans in place to pass the business along.
The support of an experienced business succession planning attorney in your area can support you with this process and empower you with the information needed to make a smooth transition. Most people assume that business succession planning is simply about determining who in the family or who among existing employees will step into a bigger role when an owner departs.
For most of these situations, the owner doesn’t envision departing for a long time. However, a certain disability or exit due to divorce or other issues can have catastrophic impacts for the business, so it’s well worth creating a business succession plan in advance and making sure that its documented action steps are undertaken. There are six primary transitions for the business to go through in the process of an owner’s exit.
The first of these is the family transition especially as it relates to how power and relationship roles will change. The second is the founder transition because in some cases you might wish to stay involved in the business. A business transition may impact customer relations and general business operations.
An ownership transition and management transition will occur as well as an estate transition to make sure that your individual estate lines up with your business planning goals.
The support of a business succession planning lawyer can make looking at these issues much easier and give you a roadmap for what to expect going forward. Do not hesitate to consult with a business succession attorney in Pasadena, CA as soon as possible.