Washington DC Business Succession Lawyer

To build a successful business, it is important to invest time and consideration into a plan in which business operations could continue if one or more owners decide to step away from management duties. A Washington DC business succession lawyer could help prepare a plan for a smooth transition or assist with managing unexpected changes in leadership.

If you are amid a business succession transition, an experienced legal counselor could help you proceed with minimal disruption to business operations.

The Basics About Planning for Business Succession

Planning for business succession involves several financial and logistical decisions regarding the leadership of a business when the owner or one of the principal decision-makers is ready to retire or unable to manage due to death or a disability. The other owners of the company will need to consider who they want to take over and how to sell the interests of the departing principal.

A legal advisor could discuss various options for the future of the company, depending on the choice of successor. If the interests pass to an outside party rather than one of the existing owners or a family member, careful consideration of goals and priorities should be made.

Buy-Sell Agreements

Many business succession plans include a buy-sell agreement. This type of contract specifies how ownership interests in the business could be sold or purchased. Terms of an agreement could include:

  • Who is allowed to buy in to the business
  • How the interests of owners will be valued
  • What events trigger a buy-out provision
  • A right of first refusal for current owners to buy departing owner’s interests
  • An agreement that the company itself will purchase a departing owner’s interests
  • How a purchase may be financed

A business succession lawyer in Washington DC could help assess whether a buy-sell agreement makes sense in the situation and craft an agreement that meets the goals of the principals involved.

Preparing for a Business Succession

When preparing for a company transition, it is important to consider factors which could slow operations, yet also give thought to the effect a transition could have on each of the owners. For instance, it is a good idea to obtain an impartial evaluation of the value of the business and explore the tax consequences of all the options.

In situations where family members are involved in the business, it is wise to consider how changes will affect them. An efficient transition plan could work in tandem with individual estate planning goals. A business succession lawyer could help ensure the decisions made to accomplish one business objective do not jeopardize another estate goal.

Work with an Experienced Washington DC Business Succession Attorney

Preparing or implementing business succession plans can be accomplished in stages. Moreover, if objectives change, a plan for succession can change with it. It is a good idea to start working on a plan while there is time to consider issues objectively. A consultation with a Washington DC business succession lawyer is a good place to start.

In a perfect world, we would all have plans that prepare us for any circumstance. In real life, however, change often takes us by surprise. If you are forced to consider business succession by a sudden change in circumstances, an experienced attorney could help make the transition smooth and efficient with an eye toward preserving assets and minimizing conflict. To learn more about the advantages a business succession attorney could provide, call today.

Washington DC Business Succession Lawyer