Business Succession Planning

business succession planning

A Must-Have Plan for Business Owners

A change of ownership of a business can cause a great deal of uncertainty for many parties. Business succession planning, however, can take away this uncertainty by clearly laying out steps that your business will take when it’s time to step down.

A business succession plan is best created and reviewed by an experienced attorney who can ensure the plan is ironclad.

To begin setting up the plan for your business, contact a business succession planning lawyer today. Call 602-667-7777 to schedule a free attorney consultation today. 

What Is Business Succession Planning?

Business succession planning is the process of legally and lawfully putting a plan in place for your business after you have either passed away or are unable to manage the business yourself.

This may be due to an accident, old age, mental health, retirement, and many other circumstances. 

Depending on the scope, scale, and size of your business, this can be a rather complicated plan with many facets.

For example, you will have to plan for:

  • Taxation issues
  • Effects on income
  • Potential liabilities
  • Maximizing business worth
  • Succession planning

Choosing a successor alone may involve convening with investors or the business’ board of directors. This individual should have prior knowledge of how the business is run. Ideally, they also should have verifiable experience managing different parts of your business at a high level.

How to Determine the Worth of a Company?

A CPA, or certified public accountant, can help you figure out what your company is ultimately worth. If you have partners, they can also outline exactly how much each partner holds in their stake. From there, a business succession planning lawyer can:

  1. Look into your business’ current legal structure and determine which parties might be appropriate potential successors. 
  2. Search through the fine print of current business documents for any holes, inefficiencies, agreements, or contracts that may leave the business at risk during the succession process.

A business succession planning attorney can also tie this plan into your overall estate plan. Estate planning allows you to lay out all of your final wishes for your wealth and assets prior to your death. For many, your business is one of the biggest assets at risk. So, don’t consider leaving business succession planning out of the big picture.

Why You Should Have a Business Succession Plan

A business succession plan has many benefits. For example, without a plan set up by an attorney:

  1. Your part of the company may be taken over by other shareholders.
  2. Your company may be inherited by a family member who has no idea how to run the business properly.
  3. If the business is inherited by family, spats may break out between relatives or between relatives and other shareholders.
  4. Employees may quit and leave en masse.
  5. Clients may end contracts and leave your services for something more stable.

But, if you have a business succession plan, there will be clearly outlined steps in place for successors, shareholders, and employees to rely on. The process of transferring ownership will be much more seamless, leading to retained employees and maintained proceeds.

4 Common Ways to Transfer Ownership of Your Business 

Thankfully, you have options when it comes to handing your business down to a successor. Here are just a few of the ways you can transfer ownership:

  1. Gift / bequeath ownership
  2. Sell the business
  3. Enter a lease-purchase agreement
  4. Add a new partner 

An attorney will be able to assist you with all the legal proceedings to make sure the transfer of ownership of your business is airtight.

Work with a Business Succession Planning Attorney Today

Business succession planning doesn’t have to be another line on your retirement planning to-do list. Instead, you can place it in the hands of a capable and experienced estate planning attorney. 

Contact Lerner and Rowe Law Group to be connected with a business succession planning attorney today at 602-667-7777, or submit an online form. Our partner’s flat fee model ensures there are no hidden charges or costs, so don’t hesitate to reach out today.

Lerner and Rowe have partnered with Trajan Wealth and Estate for their knowledge on business succession planning. The Trajan Wealth team will be reaching out to schedule your appointment. Information on Trajan Wealth can be found at