In the event of death or illness, every business needs a plan in place. This is especially important for family business owners. Much like planning for an individual’s estate, business plans are crucial to preparing for what happens next.
Know what you have
The first step to planning for business succession involves determining the value of the business. Knowing the debts and assets of your business can help you make the best plan for your business. Determining the value is helpful for determining business partner’s share values or determining if certain plans are right for you. It may also be helpful to manage any current debt to prevent any unwanted results upon the passing or illness of a business owner or partner.
Continuing the business and choosing a successor
Some business owners may prefer to plan for their business to be sold and divide the proceeds among chosen beneficiaries. Some business owners prefer to select a successor to take over the business. That successor may be a family member or trusted employee. If there are business partners involved, these decisions may become more complicated. If there are other individuals involved, having a buy-sell agreement in place may be helpful. Deciding on successors and methods of resolving disputes can also provide piece of mind to the business owner. Regardless of these choices, considering the options and having a plan in place is important to preventing future conflict.
A good business plan may also help with an individual’s estate succession. A succession plan reduces conflict and relieves stress. This planning requires the expertise of a business attorney like Steve Welle. Contact O’Keeffe O’Brien Lyson Foss in Fargo, North Dakota to discuss your case or call 701-235-8000 or 877-235-8002.