Succession planning is closely tied to estate planning–it deals with your expectations for the future. For many small business owners, retirement can seem like a far-off dream. Stress that comes with managing cash flow and balance sheets can cause business owners to postpone creating effective business succession plans. Willow Creek Law can help both parties to understand business costs, estate planning, and retirement planning as part of a business succession plan.
Why You Need a Business Succession Plan
It is vital to your business to create a business succession plan that:
- Ensures an agreeable price for both parties
- Prevents problems with external takeover due to cash flow constraints
- Provides a timely settlement of an estate in the death of a business partner or owner
Willow Creek Law has helped many Utah businesses with a large variety of needs, including business succession plans. We focus on helping business owner create a smooth and equitable transition of their business.
How to Select a Successor
Perhaps one of the most difficult tasks business owners are faced with is selecting the right successor. Most business owners prefer to have their business assigned or transferred to a family member who shows interest and who has the necessary skills to run the business. Others may prefer to select an associate. If you have a business partner, you may both be interested in a buy-sell agreement to purchase the other’s interest in the business. As you make your decision, it is important to weigh the strengths and weaknesses of partners, employees, and family members that are interested in running the business.
Evaluate the Business Cost
We help business owners review financial records and recommend a certified professional accountant perform an appraisal of the business net worth. Correct evaluation of the business will help both parties agree on a fair amount for the business.