Business Succession Planning Protects the Family Business

12:47 pm Uncategorized

open sign1 e1310154408379 Business Succession Planning Protects the Family BusinessCalifornia has a long history of entrepreneurship and there are thousands of families that have launched businesses here and watched them thrive through the generations.  However, there are also many examples of family businesses that have failed to weather the changes in generational management and closed their doors.  In many instances, this may have been avoided through careful business succession planning.

A good succession plan provides for a smooth transition.  While it may take many months, or even years, of negotiation and fine-tuning, a viable succession plan increases the odds that the family business will survive through the years.

A business succession plan should:

  • Detail the firm’s future ownership and leadership and what steps will be taken to get there;
  • How information will be communicated to employees and other family members about the transition;
  • Minimize taxes and make provisions for the retiring generation without adversely affecting the firm’s financial stability;
  • Include a valuation appraisal and buy-sell agreement in case a family member decides to exit the business.

If you are a California small business owner, our Orange County business planning law firm can help you safeguard your business assets for future generations.  Contact us today to learn more.

Help is available to you by contacting your Southern California financial planning experts today.

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