Business Succession Planning FAQ
1. What is business succession planning?
Companies’ missions and workforces evolve with time. When leadership roles change hands, it’s critical that the transition is as smooth as possible, and business succession planning is an essential tool for ensuring continuity.
2. What happens when an owner dies, becomes incapacitated or is otherwise unable to work?
We recommend that business leaders create estate plans to ensure that their stake or ownership transitions efficiently. Possible solutions may include hiring temporary management, selling the enterprise or simply acquiring new partners.
3. How will an owner’s divorce impact a company?
Divorce claims that affect personal assets may also impact business stakes. Although working with a lawyer to draft a prenuptial agreement is a useful precautionary measure, it may also be possible to minimize business disruption after the fact by engaging in a collaborative or mediated divorce.
4. What if an owner wants to sell his or her interest?
Businesses have options for defining governance mechanisms. Shareholder, buy-sell and operating agreements can also lay down the rules for what rights owners retain and how they’re allowed to dispose of their interests.
5. How can an owner be terminated for cause?
Businesses must tread carefully to avoid employment misconduct. By using well-written contracts, it’s possible to define what constitutes “for cause” termination and leave your enterprise with options.
6. How do businesses carry forward following a succession?
The attorneys at Lins Law Group, P.A., understand that Tampa’s businesses can’t afford succession setbacks. We will work hard to help your firm continue operating in the face of leadership adversity. It may be impossible to predict every ownership scenario, but with our knowledgeable legal advisement, you don’t have to.
7. How will you handle business succession?
Whether you’re a surviving partner or an owner with brighter prospects elsewhere, you need to ensure that you prepare for the future. It’s impossible to implement adequate safeguards without taking a proactive stance, so don’t wait until you’re about to retire to decide what you’ll do with your firm.
At Lins Law Group, P.A., our business lawyers can help you keep your business running like clockwork regardless of whether you’re there to oil the gears. Talk to us at 813-280-0082 or email us your business succession inquiries online. With over 30 years of legal experience, our attorneys can help any company plan ahead.