Business Succession Planning

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Introduction

The transition of a family owned or closely-held business is a significant undertaking even with the best laid plan. This article will outline the issues that should be considered by the business owner in transitioning a business.

Types of Business Succession Planning

A business succession plan should address two fundamental events – an unexpected death or disability of the business owner and a planned succession of the business. Planning for an unexpected death or disability generally takes the form of a “Buy-Sell” Agreement whereby another party, such as the business itself, another owner of the business, or a key employee, is obligated to purchase the ownership interest of the deceased or disabled owner. A planned succession of a business generally takes the form of a gift or sale to another owner, key employee, or family member.

Implementing a business succession plan is not easy. A considerable amount of time, energy, and thought must be put into a plan for it to be effective. The failure to establish or implement a business succession plan can be fatal to the continuity or survival of the business.

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© McNees Wallace & Nurick LLC | Attorney Advertising

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