Succession Planning

We Have Over Four Decades of Business Succession Planning Experience

Succession planning is a form of merger and acquisition planning that needs to integrate the business owner’s estate planning and also has the additional complexity of negotiating a fair transaction with whom the owner has a personal relationship with namely family members or long-term employees.   Business and Legal Advisors has 40 years of experience in addressing the complicated issues surrounding a succession plan enabling them to develop, implement and customize integrated and cost-effective succession plans that will minimize the risks for both the owner and the new management. 

Areas of expertise include: 
  • Preparing a Business for Succession Plan
  • Negotiating, Implementing and Documenting the Transaction of a Business, including:
  • Identifying Structure of the Transaction – Equity, Assets, Merger, ESOP or Strategic Partnership
  • Structuring the Allocation (Equity, Assets, Goodwill, Consulting or Non-Compete) and Payment of the Purchase Price (Bank or Governmental Loan, Preferred Equity or Seller Financing
  • Optimizing After-Tax Benefits through Income, Gift and Estate Tax Planning
  • Developing Potential Alternatives for Growth for a Business for future generations
Although a succession plan is essentially a merger and acquisition transaction, there are some significant differences that BLA will collaborate with owners and new management to address including:

  • The owner will generally provide a significant amount of the financing of the transaction, which will increase risk.
  • The owner will evaluate if there are any current gaps that need to be addressed prior to new management operating the business.
  • It is more critical for the owner to ensure that new management has completed agreements regarding management, dispute resolution provisions and  what happens if a member of the new management has a planned or unplanned exit from the business.
  • The parties must balance the competing interests in structuring the purchase payments that will provide a livable income to the new management and still provide sufficient compensation to the owner.
  • If the owner has other children who are not involved in the business, then the owner must consider plans to equalize and separate the owner’s estate.
If you are a business owner who is considering a succession plan for your company, please contact us for a free consultation.

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