Passing The Business To The Next Generation
You’ve worked hard to build a successful business, but there comes a time to dial back your involvement or step away entirely. If you have identified a willing and able successor, The Angell Law Firm, P.C., can help you make arrangements to transfer the business to a new generation of owners.
Our attorneys have guided many business clients in Lafayette and Contra Costa County through business succession. We invite you to schedule a meeting at 925-951-0796.
Business Succession Planning In California
Succession planning is a complex process, requiring a thoughtful approach and attention to detail. Often, the owners and the next generation have competing visions or contradictory demands. A son or daughter may expect to inherit the business outright, while the parents do not intend to simply give the business away.
Siblings may disagree on whether to keep the business intact or divide it up, such as a commercial or residential rental property with multiple units. Some of your children may want to be deeply involved, while others may be indifferent and have no interest in running or working in the business. We can help all the parties reach consensus or negotiate the terms of transfer on your behalf.
Our knowledgeable lawyers can walk you through the many scenarios and decisions, such as:
- Who will take over? Is it staying in the family or will you sell to a key employee?
- Can they buy the business outright, or will you structure payments over time?
- Are you turning over the management reins, but retaining ownership to draw retirement income?
- What is the value of the business, and what is fair consideration for your “sweat equity”?
- Will you need to create a new business entity or revise the operating agreement?
- Do you want to business to change hands when you retire, or upon your death?
Don’t Wait Till The Eve Of Retirement
Ideally, business succession should be planned out years in advance, to make sure everyone is on the same page and all the ducks are in a row. Don’t underestimate the complexity. There are tax and estate planning implications, and you want to set the right expectations for your children or other successors and have the transition to be as seamless as possible. These are not decisions best made during a crisis.
We build close relationships with our business clients, to gain an understanding of the business enterprise and the goals and personalities of those who are running it. That foundation helps us guide you to sound solutions in business succession planning and all commercial legal concerns.
The sooner you start the planning process, the better you can protect your personal stake and the long-term viability of the company. Call The Angell Law Firm, P.C., at 925-951-0796, or contact us online, to arrange a consultation.