Business Succession in Ohio
Your business represents your life’s work, and you want it to continue going long after you retire. First, though, you need a business succession plan. Without a plan, your share of the business’s assets must go through probate. Also, your business could suffer catastrophic losses due to the lack of leadership.
Our Southeast and Central Ohio business succession planning lawyer can help you make the transition. We will go over your timeline, help you choose a successor, and so much more. Contact us today to go over your needs. Then, we can develop a strategy for you.
Business Succession Planning Steps
Our Ohio business succession planning lawyer will assist you with:
- Creating a succession timeline
- Evaluating potential successors
- Valuing your business
- Formalizing your standard operating procedures
- Developing a strategy to fund the succession
Choosing an Heir As a Successor
Many Ohio business owners select an heir as a successor. This is often a clear choice when a child or another family member has an important role in running the business. But even if you choose a family member to take the reins, you still need to have a business succession plan in place.
First, you’ll need to decide if you want one or more family members to take over the business. Then, you’ll need to create instructions that detail the succession plan and compensation structure. You also might want to draft a buy-sell agreement. Then, family members who don’t have active roles in the business can sell shares to others. Finally, you’ll need to consider the leadership structure. With so many tasks to tick off your to-do list, it’s wise to consult with a Central Ohio business succession planning lawyer.
What If You Have A Co-owner?
If you co-own the business with another individual, you can consider selling your portion to your partner. Your Southeast Ohio business succession planning lawyer can draft an agreement between you and your business partner. The agreement will state that the partner will purchase your interest in the business if you become incapacitated or pass away.
You will also need to create a buy-sell agreement if you choose the co-owner as your successor. Your attorney will use this agreement to ensure you receive fair compensation for the sale of your portion of the business. In addition, your attorney can advise you on key insurance policies that you might want to include as part of the succession plan.
Can You Sell Your Business To An Employee?
Do you have a key employee who is vital to your day-to-day operations? Does the person know the business inside and out and is interested in taking over? If so, you can name the key employee as your successor. Your Ohio succession planning attorney will help you create a timeline that includes your retirement date. Your lawyer will also help you draft a buy-sell agreement and other documents to ensure a smooth transition to the new owner.
Preparing Your Business For Succession
If you don’t have a successor in mind, you might choose to sell it to a third party. However, you will need to take steps to prepare your business first. This might include formalizing your operating procedures, training a general manager, and valuing your business. Your Ohio business succession planning attorney can assist with each step of this process.
