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
- 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.
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