Business Succession Planning

Who’s Minding the Store?

No one wants to focus on their own mortality but most people still have some kind of an end-of-life plan that includes a will and a burial plot. Unfortunately, small business owners tend to forget that their small business could be the largest asset they leave their family … but only if they plan for their business to live longer than they do.

You Need a Business Succession Plan.

Birth, death, sickness, marriage, divorce, natural disasters…these are all variables that can change your life and the life of your business. Ignoring them is not the answer. A good business succession plan can protect your small business from all of them.

What are the advantages of creating a business succession plan?

  1. It ensures an agreeable price for a partner’s share of the business and eliminates the need for valuation upon death because the insured agreed to the price beforehand.
  2. Any life insurance policy benefits will be immediately available to pay for the deceased’s share of the business, with no liquidity issues or time constraints. This effectively prevents the possibility of an external takeover due to cash flow problems or the need to sell business or other assets to cover the cost of the deceased’s interest.
  3. A succession plan can greatly aid in allowing for timely settlement of the deceased’s estate, including avoiding probate and the eliminating the estate tax.

What are the most common questions resolved by implementing a business succession plan?

  1. Who will be my successor?
  2. How much is my business worth?
  3. What will happen to my business partners and their families?
  4. How will my business be transferred to my partners or heirs?
  5. What happens to my company if I become incapacitated?
  6. Can I keep my relatives from inheriting my company?
  7. How do I protect my spouse and children?

At Wild, Felice & Partners, PA, we are able to provide the expertise and guidance needed to develop a succession plan specifically tailored to your business. Our lawyers are trained to examine all aspects of business planning and see to it that all possible issues are addressed. For more information on how to plan for you business’ future, contact our South Florida law firm for a free consultation at (954) 944-2855. It’s a Wild world. Are you protected?

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