The attorneys at Bauer &\nAssociates regularly assist family run businesses. One of the most common issues for owners of\nsuch businesses is to come up with a \u201cbusiness succession plan\u201d \u2013 who will own\nand run the business in the future? \nSooner or later, every owner wants or needs to retire. A complete succession plan addresses many\nissues including what is to happen to the business upon death, retirement, or\nsickness, who will manage the business, how ownership will be transferred, and the\nhandling tax issues, to name a few. <\/p>\n\n\n\n
Family business owners need\nto consider succession planning prior to any significant event that occurs. The \u201cexit strategy\u201d should be set out early\non in the business and should be included in any business plan for a\ncompany. Owners should retain the\nservices of an attorney, accountant, and financial advisor to assist them in this\nplanning. <\/p>\n\n\n\n
Family members should be\ninvolved in the \u201cprocess\u201d to determine their interest in the business and who\nis the most capable to take over. Often\nfamily members do not like to discuss topics such as the death or retirement of\ntheir parents, so involving qualified third parties may make the process more\neffective. While an owner may believe that the \u201cfirst born\u201d should \u201clead the\ncompany\u201d, the owner needs to make sure that the proposed successor has the\ndesire to take such a position, has the same business culture outlook as the\nowner, and that the person has the business acumen to be successful in the management\nof the company. <\/p>\n\n\n\n