In terms of how much you ultimately earn from your business, the timing and manner of your exit from the business is just as important as your formation and operational strategies. Unfortunately, most privately held businesses lack any form of business succession planning, and the vast majority of family-owned businesses do not survive into the second generation.
Esther Hopkins takes particular pride in seeing business owners through the complex succession process, helping them to avoid family and partnership disputes and receive maximum value if they wish to sell or, if they so desire, transfer their business seamlessly to employees or family members. And just as you strive to streamline your business operation to control costs, Esther uses her litigation background to help you avoid the costs associated with disputes and litigation.
Some of the common events or factors that can be addressed in a business succession plan include the death of an owner, a non-performing business partner, and a business partner who retires. Another is the passing of a family owned and operated business to the younger generation. Disputes and ill-will are all too common in these family situations, but they can be avoided—along with the expenses they incur—by proper advance planning that includes consideration of the strengths and weaknesses of the succeeding family members.
One of the crucial aspects of a succession plan is defining the method that will be used to value the business at the time an ownership stake in the business is to be transferred. It is critical that the method used to establish the value of the business be reasonable for both the selling owner and the remaining owners.
At the Law Offices of Esther Hopkins, P.C., we have the experience and know-how to help new and established California businesses create a smooth succession plan. Every business is unique, and every succession plan must be tailored accordingly. We’ll invest the time and resources to create the plan that is right for you. Contact us today to discuss your particular needs and goals.