Succession Planning

Responsible business owners should proactively contemplate how certain events in the lifetime of a business will be handled.  Events such as retirement, death, disability, divorce and early departure of a partner demand careful planning.

Retirement for business owners demands additional consideration and planning, well-beyond that of the average individual.  There may come a time when a business owner desires to hand his or her business over to a family member to carry on the legacy of their hard work in creating their business.  Alternatively, a retiring owner may desire to sell his or her interests in the business to a partner or other individual or entity.  The attorneys at Alford & Burkhart can assist business owners in creating plans and agreements that will make the transition of business owners into retirement a smooth transition.

Furthermore, Alford & Burkhart can help business owners plan for the unfortunate event that a business partner passes on or becomes disabled or incapacitated prior to ending his or her business relationship with other partners.  Agreements and insurance policies can be structured for business partners to insure that the living and able business partners will have the funds and opportunity to buy-out a deceased or disabled partner’s interest in the business.

Other events also demand planning.  In considering events like a divorce between a business partner and his or her spouse or disagreements between business partners leading to one or more partners walking away from the business, agreements can be installed early-on (and before the chaos) to provide instructions for how interests in the business can be transferred and how those interests are valued.

Business succession planning should not be ignored.  A proactive approach towards sometimes difficult topics can save you, your business partners and your loved ones time, money and stress in the future.

Triggers for Planning: Death Divorce Disability Dire Financial Circumstances Disagreement Departure of an Owner

A "Business" Will

Often times succession planning takes the form of a business “will,” meaning that owners/partners in a business will decide proactively how their interests in the business will pass upon death.

A Business "Pre-nuptial"

Just like a marital pre-nuptial agreement, through succession planning, business owners/partners can proactively decide how a business will be dissolved upon disagreement or dire financial circumstances, including how ownership interests in the business will be purchased or sold.

Buy-Sell Agreement

This is the most common term for the agreement between partners that determines when and how ownership interests will be sold upon triggering events.

How Can We Help You? Call Us Now: (678)835-7210