When the time comes to pass the reins to the next generation of leadership or ownership at your business, every step of the process must be deliberate, well-planned, and executed legally. Whether it’s due to retirement, a sale, or unexpected events, business succession planning ensures that your company is prepared for the transition.
There are many benefits of working with an attorney to create a solid, airtight plan for the future of your business. Let’s take a look at why it’s so critical and how to go about finding the right legal team to get the job done right.
Why You Need a Business Succession Planning Attorney
A business succession planning attorney creates a legal framework that should address all the key issues that may arise during the transition. This could involve tax implications, ownership structures, and possible legal disputes — all of which are best addressed before they happen.
Having a legal professional handle your succession planning helps to ensure that everyone involved complies with all relevant laws and regulations. No one wants to jump through all the hoops only to find that a misstep or two may jeopardize the whole thing. Experienced attorneys bring an objective perspective to the table and can navigate complex legal matters more efficiently than you’re likely able to do on your own.
Steps to Hiring a Business Succession Planning Attorney
While it may involve a fair amount of work and preparation on your part, finding a competent attorney who understands the intricacies of your company, industry, and personal needs is the most important step you can take. However, the process doesn’t need to be complicated.
Follow these steps to find the best legal team for planning your business’s future with a new owner:
1. Research Potential Candidates
Start with an online search to identify potential attorneys or law firms with a proven track record in business succession planning. Network within your industry to talk with other business owners who have been through the succession process. They may be able to give you referrals.
2. Conduct Interviews
Once you’ve narrowed your list to three or four potential candidates, schedule a time to meet with each of them individually. Many law firms provide a free initial consultation, which is always worth your time because it gives you a chance to assess their communication skills, professionalism, and knowledge about business succession planning.
3. Check References and Reviews
Unless there’s a pressing reason, don’t rush the process. Take the time to ask for references and contact them to confirm their credentials. Online reviews can be helpful, but only if you look for repeated patterns and consistencies in the reviews (either positive or negative).
4. Discuss Fees and Costs
Attorney costs can vary widely, so be sure you have a clear understanding of the attorney’s fee structure. Understand what services are included and if there are any additional costs for specific services. Reputable attorneys should be upfront about their charges and contracts.
5. Make Your Selection
Whether there are multiple lawyers in your local area who can provide outstanding services for your succession planning needs or just one, make certain that you choose the attorney who truly understands your needs and is someone you’re comfortable working with. You want someone you can trust to keep you and your company’s best interests in mind.
What to Expect When Working with an Attorney
Once you’ve agreed to work together, your attorney will start by reviewing your business structure, ownership details, and financials. They will work with you to develop a detailed plan that addresses all potential issues related to succession and the future survival of your company.
After all the specifics have been ironed out, the attorney will then draft legal documents required to implement the plan. Expect them to guide you through any tax implications and legal requirements involved in the transition process. You want to become knowledgeable about every aspect of the plan.
Throughout the process, they should keep you updated about the plan’s progress and any next steps. When all the documents have been approved and signed, your business succession plan will be ready to implement whenever you are.
Auld Brothers Law Specializes in Business Succession
At Auld Brothers Law, we understand the intricacies of business succession planning. With four generations of Auld attorneys, we’ve worked with many local businesses and helped them successfully transition ownership.
We help you strategize a business succession plan that not only ensures the continuity of your business but also includes strategies for reducing taxes, protecting assets, and planning retirement income.
With our specialized knowledge and experience, we can guide you through every step of this critical process. Contact us today for a free, 30-minute consultation to discuss your business succession planning needs.