Business Succession Planning Lawyer
Family Business Succession Planning Attorney in Spartanburg, Greenville Upstate South Carolina
Most business owners spend more time planning their vacation than how to exit their business and a majority of family owned businesses have no business succession plan. The business succession planning lawyer at the McQueen Law Firm works with family owned and closely held businesses in Spartanburg, Greenville and throughout the Upstate of South Carolina. Our business succession planning attorney guides business owners through the strategic planning and implementation process of creating a comprehensive business succession plan to meet their business and lifetime goals and objectives.
What is Business Succession Planning
A Business Succession Plan is a multidisciplinary process providing a comprehensive and strategic approach to guiding the transition of business ownership. It is one of the most important components of a business’ strategic process that provides a roadmap for estate and retirement planning, addressing trigger events such as death, disability and illness, securing the survival of the business through effective transition of ownership interests and maximizing the return of the retiring owner’s investment.
Consequences of No Business Succession Plan or “Exit Strategy”
The unfortunate fact is that most owners wait until an unplanned event happens to transition the business. By not creating a business succession plan the owners risk; monetary loss due to unexpected estate, gift and income tax issues, gaps in wealth from the lack of business valuation activities and financial planning, and the health and longevity of the business to future generations. Our business succession planning lawyer can help you avoid these planning pitfalls.
Reality Check for Family Business Owners
Family owned businesses are the single largest economic driver in the United States, creating more wealth and opportunity for individuals, their families and future generations. Unfortunately, only 30% of family businesses will survive into the second generation, 12% remain viable into the third generation only 3% operate into the fourth generation. These results are driven by the absence of a comprehensive business succession plan and waiting as opposed to starting the process early.
Various studies have revealed that 80% of business owners exit their business to retire and that 50-75% of a business owners’ net worth is in his/her business assets with the balance is in their personal real estate and financial investments. Yet the sad truth is that 85% of family businesses have no business succession plan, 67% have no buy-sell agreement and only 29% have an estate plan.
Ideally, a formal business succession plan should be developed at the time of business formation and then be revised regularly. Early planning provides flexibility, allowing family’s succession strategy to alter course more easily if circumstances change. Our business succession planning attorney can help you accomplish your financial and lifetime goal.
Family Business Succession Planning Lawyer
Our business succession planning attorney works with business owners to understand their individual and unique situation taking a multidisciplinary approach to the development and implementation of a comprehensive business succession plan. We provide support and life-cycle management of the business succession planning process including the following components:
Components of the Business Succession Planning Process
- Establish business succession plan “exit strategy” goals and objectives;
- Evaluate options for succession, including determining management and ownership interests
- Develop plan that specifies disposition of ownership interests;
- Develop and communicate your exit strategy;
- Facilitate the discussion with family members, including representing your interests in any disputes that may arise;
- Recommendation and preparation and of buy-sell agreements
- Sale to a third party;
- Prepare business contracts, employment agreements, non-compete;
- Coordinate exit strategy with wealth preservation and asset protection planning, estate planning, tax planning and retirement planning activities;
- Lifetime transfer strategies and options, gifting strategies, trust arrangements or other vehicles;
- Determine tax implications and incorporate tax strategy into process to minimizing tax liability;
- Minimize or prevent individual liability for business debts;
- Business valuation and strategies for maximizing value;
- Review and determine appropriate operating structure and tax aspects of entity;
- Collaborative member of business succession advisory team;
The health and longevity of a family business depend on early succession planning and on communicating the results of that planning in a timely fashion. Planning efforts are a continued and dynamic process rather than a single event. Our strategic approach to business succession planning we believe will increase the likelihood of the business becoming multigenerational and endure leadership and ownership transitions and deliver lasting value to the owners, family and other key stakeholders.
Plan early! Contact a Spartanburg Business Succession Lawyer & Greenville Business Succession Lawyer
The day will come when you will relinquish you ownership interests to another party. It will either be planned or unplanned. The business succession planning lawyer at the McQueen Law Firm can assist you in all aspects of establishing and managing all aspects of a comprehensive business succession plan. Contact our business succession planning attorney at the McQueen Law Firm to discuss your business transition requirements today at 864.585.5021 or online to schedule an appointment.
McQueen Law Firm | “A Trusted Partner” | Serving the State of South Carolina Since 1985 | Spartanburg County | Greenville County | Anderson County | Cherokee County | Union County