America is currently experiencing the greatest wealth transfer in human history. As the Baby Boomers look to retire, many small business owners wish to transfer their businesses to younger generations. Accomplishing this requires a lot of planning. That is why The Taormina Firm works with small businesses to ensure that business transitions run smoothly.
Of primary importance in business succession planning is finding out what an owner's goals are. Does the client wish to pass the business down to his/her children? Does the client wish to shut the business down at death or do they wish for it to continue as long as possible? Depending on how these questions are answered, a bunch of other questions that need answering arise. Do the children even want to continue the business? Is there anyone else in the current business that would like to take it over? Who are the key personnel necessary for the survival of the business?
When The Taormina Firm works with clients seeking business succession, these questions are asked at the outset of every planning session. The name of the game in business succession planning is communication, not only with your lawyer, but also with your children and other key personnel.
Once these questions are answered, we begin the process of restructuring the organization of the business. These may include amending the articles of incorporation/organization, bylaws, and operating agreement. It likely includes promissory notes and other financing tools. And it may even require reviews of employment/independent contractor contracts, service contracts, and other agreements used by the company to service its customers and employees. Then there is the question of continuity. What happens if the business owner becomes sick or dies suddenly? Will the business be able to continue operating? Are there necessary policies and procedures in place to ensure that succession is smooth and that disruptions are minimal.
If you are interested in business succession planning, please contact The Taormina Firm today.
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