From small family-owned shops to growing corporations, the topic of business succession is essential. One of the most vulnerable times in the lifespan of a company is the transition between owners. Therefore, it is always good to have a plan in place.

When you are thinking about the future of your organization, a practiced estate planning attorney is ready to help you. The right plan can ensure that you avoid pitfalls that could have traumatic consequences for what you have spent your life building. Let an Upper Marlboro business succession planning lawyer at Carmiece Graves Law advise you of your options today.

Understanding the Risks of Death or Incapacity for an Owner

Very few businesses are capable of running smoothly without someone in control. This is especially true for small family operations that rely on the skill and experience of an operator. The sudden, unexpected inability to perform in this role can have devastating consequences for the company.

When it comes to family-owned companies, the owner’s sudden death could lead to something known as Orphan’s Court. In most jurisdictions, these proceedings are referred to as probate if the owner passes away without a last will and testament. The same is true if a will existed but did not provide for the company’s transition. In this situation, any surviving spouse or children would inherit a share.

This can be potentially fatal for a small business, as dividing these entities may not be possible without liquidating assets. Avoiding a split is one of the most important reasons to seek guidance from an Upper Marlboro attorney who is well-versed in understanding the details surrounding business succession planning.

Options for Larger Companies

While the threats facing larger organizations are usually different, the lack of a plan can still be devastating. It might require the forced sale of stock or lead to complex litigation. The cost of legal proceedings alone might be enough to send the business spiraling into insolvency. The good news is that there are options for avoiding these outcomes. With the proper support, preparing for the day that someone else takes control over a legal entity can reduce the risks of failure.

Important Issues to Consider

Many steps go into transitioning to a new owner, and an Upper Marlboro business succession planning attorney could help. One of the most critical issues to consider is how a business is transferred to a new owner. This includes upon death, when the company is sold, or after retirement. In addition to the sale of the entire company, a plan may also be necessary to transfer certain intellectual property rights or real estate the business owns.

For larger entities, there may be a board of directors to deal with. An attorney could help develop a strategy that allows the board to succeed while also providing an exit strategy. The support of legal counsel is crucial for avoiding mistakes during this sensitive period.

Talk to an Upper Marlboro Business Succession Planning Attorney Today

For every owner, it is critical to control their company’s direction when they can no longer lead. Preparing for this outcome can ensure that future generations can benefit from the work you have done throughout your career.

Contact an Upper Marlboro business succession planning lawyer immediately to learn more during an initial consultation.