Building a family business with succession planning

Owning a business can understandably be a source of pride. However, if you own a business, it is not unreasonable for you to consider that you may eventually leave the company or retire. In this situation, naturally, you may want to leave your business in the hands of the next generation of your family. Unfortunately, if you do not have a solid succession plan in place, the business you have poured your money, energy, time and even tears into may suffer catastrophic consequences.

Succession planning is essentially the process of pinpointing those who will replace a business’ leaders when they leave. This planning process can be challenging, particularly if you wish to write family ownership into your succession planning as well as your estate. However, an attorney can help with recognizing potential obstacles and then developing the necessary corporate mechanisms for ensuring that the business transitions from one leader to another in the smoothest manner possible.

A particularly important question to ask is, what will happen if you die or suffer a debilitating illness while still at the helm? In this situation, it may be a good idea to have executive employment and shareholder agreements in place to avoid interruptions in your business’ corporate governance. Creating non-solicitation and non-compete agreements are especially critical to include to keep your most important employees from jumping ship and joining your competitor.

We understand the importance of a business legacy – after all, we’ve been around for a century. Since 1918, the attorneys of Seder & Chandler have excelled at facing complicated and fast-moving legal issues, from complex corporate law, commercial real estate law, estate planning, to acting as counsel for law matters business and personal. Contact us today to learn how our combination of traditional commitments and adaptivity has given us a legacy of a 100 years.