Business Succession Planning in Melville, NY

Retention And Buy-sell Retention Planning

Most often, business owners choose retention planning or buy-sell retention planning. If you have a family business, retention planning might be the right choice. Then you can transfer your shares to one or more family members.

If you don’t want to keep the business in the family, you can consider buy-sell retention planning. You can transfer your shares to employees or other shareholders with this strategy. First, you’ll name interested parties you’d like to take over when creating the plan. If they reject the offer, you can find someone outside of the company to take over.

These are just two of the options your Melville, NY, business succession planning lawyer can discuss with you. Schedule a strategy session to learn more about your options.

Impact Of Failing To Plan

It will be hard for your business to continue if you step down without a succession plan in place. First, there will be a lot of confusion about who will take the helm. A family member might take over after your estate goes through probate, or shareholders might choose to absorb your part of the business. It’s also possible that shareholders and family members split your shares, with each taking a portion.

This can cause fighting between family members and shareholders, and customers and clients might depart out of fear that the company will collapse. Sadly, that fear will likely be warranted since the new leader might not have the tools or resources needed to run a successful business.

Fortunately, you can avoid this with help from a Melville, NY, business succession planning lawyer. Reach out to our firm today to discuss your succession plans.

Planning After Choosing A Successor

If you have already chosen a successor, you might think you don’t need to worry about succession planning. However, choosing someone to take over for you is just one step in the business succession planning process. The right plan will protect your employees and shareholders while reducing your tax liability. Thus, consult with our Melville, NY, business succession planning lawyer to discuss the additional steps you must take. This might include determining how the shares will be distributed, ensuring that the new owner will retain your existing employees, and valuing the business before the transfer or sale. With so many details to handle, it’s wise to consult with a lawyer before moving forward.

How Early Should You Create A Succession Plan?

If possible, you should consult with a Melville, NY, business succession planning lawyer at least five years before you plan to retire. Through early planning, you can mentor your successor so he or she will be ready to take over when you step down. Additionally, you will have the flexibility to adjust your business succession plan as you get closer to retirement. Don’t worry if you’ve missed the five-year window, though. While that’s ideal, your attorney can help you accelerate the process, so you’ll be ready to retire in the near future. Don’t delay any longer. Contact our firm today to set up a strategy session.