Brian R. Katz
Creating a Business
Succession planning should be an integral part of your business. Many business owners have the vision to build and run a successful company. However, they fail to take adequate measures to secure the company's future after their death or incapacitation. A business succession plan can provide you peace of mind for the business you've worked so hard to build.
If you are ready to create a business succession plan, I will guide you through your options and help preserve your business and protect your legacy. Katz Business Law is proud to serve clients throughout Granite Bay, Folsom, Rosehill, Rocklin, and Auburn, California.
Why is Succession Planning Important to a Business?
After investing a lot of time, energy, and resources into building a successful business, it is crucial to have a plan in place for a smooth transition in the event of your retirement, disability, or death. Succession planning is a process used to identify and develop new leaders in a company that can replace key stakeholders should the need arise. The reason that business succession planning is important to a business is that it allows:
- Planning in case of incapacitation or death
- Having a voice in choosing a successor
- Getting wealth distributed to your heirs by selling or liquidating the business
- Reducing or eliminating estate taxes
- Grooming the successor to carry on the goals of the business
- Providing information on how to manage debt repayment
- Identifying competency gaps and development needs
What Are the Consequences of Not Having a Succession Plan?
According to a study, 58% of small business owners have no succession plan. Some consequences of not having a succession plan for your business include:
- Heirs may be reluctant, unprepared, or unable to lead
- You are putting the stability of the business at risk
- Your business may incur substantial estate taxes
- The choice for successor leadership may not be honored
- Lack of liquidity could force heirs to have to sell
- Long-term financing may be difficult where no plan exists.
How Do You Develop a Succession Plan?
Here are some essential tips to kick-start the succession planning process at your company or business:
- Be proactive with your succession plan. You can start by looking into the future
- Understand your company's strategy, goals, and structure
- Evaluate employee skills and unique strengths to pinpoint succession candidates
- Increase professional training and development efforts for potential successors to get them ready
- Provide recognition and advancement opportunities for employees
- Do a trial run of your succession plan
- Integrate your succession plan into your organization's recruitment strategy
- Think about your own successor
How Legal Counsel Can Help
Whether you're developing a succession plan for a privately owned or small family business, hiring a knowledgeable business succession planning attorney is crucial for proper guidance and advocacy. No matter how strong your business succession plan is, without the proper legal documentation and oversight, it may not be enforceable.
I have dedicated my career to providing strong representation and legal counsel in matters of business succession planning and estate planning. I will help you:
- Facilitate a realistic valuation of your company for accurate and proactive planning
- Analyze threats and develop strategies to mitigate potential risks
- Determine a feasible exit planning processes
- Prepare business succession documentation and other critical written communication
- Ensure that your business assets are properly distributed upon your death
Katz Business Law can help identify, protect, and manage the transition and potential growth of a business. I can give you the peace of mind that your legacy and investment will be well-preserved.
Experienced Estate Planning Attorney in Granite Bay, CA
Creating a succession plan is crucial to ensure a smooth transition of your business upon your retirement or death. Contact Katz Business Law today to schedule a free consultation. I will give you proper guidance and help you navigate key decisions. I proudly serve clients throughout Granite Bay, Folsom, Roseville, Rocklin, and Auburn, California. Call my law firm today to speak with me directly.