In this article, you will discover:
- What is involved in succession planning of a business
- If a buy/sell agreement can be included in your estate plan
Estate planning documents by themselves will not protect your business from lawsuits or debts. But, estate planning documents in combination with a proper business organization setup can protect you and your beneficiaries from lawsuits, judgments, and liens.
What Is Involved In The Succession Planning Of My Business If I Plan To Leave My Company Or When I Die?
Succession planning is a multidisciplinary process. When you engage in succession planning, you are not just focusing on the future, because it is impossible to plan for the future without a deep understanding of the present.
Leaders have to know the current reality of their businesses — how they operate, where the value lies, what their needs are, who their most vital customers are and why — in order to prepare for new leadership and new structures that can provide continuity in the ways that matter.
There are many questions that decision-makers should address early and often during the goal setting phase:
- Should the business owner keep the business or sell it?
- If the business is to remain within a family, who will lead it?
- Will the selection of a new leader create interpersonal acrimony?
- If the business will be sold, is the current operating strategy for preserving or increasing stakeholder value?
- For business owners who plan to sell their business in the future, what short-term actions could enhance the value of the business when a sale is executed later?
Succession planning means different things to different people. It can be as simple as naming a family member to take over, or as complex as overhauling the structure of the business to align it with long-term objectives. Many businesses do not pay enough attention to succession planning in any sense of the term. Still fewer see the true scope of the challenge. Effective succession planning isn’t only about deciding who will run the business — it’s just as important to determine what kind of business those people will run.
Can I Create A Buy/Sell Agreement For My Company As Part Of My Estate Planning Documents?
Yes, you can indeed create a buy/sell agreement for your company as part of your estate planning documents. In fact, a proper Asset Protection Plan will include a buy/sell agreement for any family business.
For more information on Business Succession Planning In The State Of TX, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling 254-233-7300 today.