Proper succession planning involves planning not just for the desired events, but also for the undesirable events that may arise such as a death, disability, departure, and dispute. With advanced planning and proper agreements, we can reduce the impact of these unfortunate and often sudden, events on a business. Our business attorneys have deep experience in this area and have developed unique planning techniques including the use of trusts.
There are many techniques available to transition ownership of a business to employees. Stock options may be used to grant employees the right to buy stock at a fixed price in the future. There are also various types of equity plans that may be used to grant or sell equity to employees. Vesting schedules may be used in both plans.
It is essential that the succession plan of the business and the estate plan of the business owners work in concert. Frequently, the business is one of the largest assets of the business owner. For this reason, it is important to consider the business and personal situations of the owners as we evaluate appropriate tax savings strategies and estate planning techniques.
With a little time and thoughtful design, we can help develop a plan to protect, grow and transition your business. A successful business transition starts with an effective plan, and it is never too early to develop one.