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Business succession planning: Timing is key

No time like the present. Better sooner than later. Don’t put off until tomorrow what …

Reminders like these are germane to behaviors and activities across a broad swath of life, and they certainly command relevance in the business world.

Indeed, planning with a sense of timeliness and urgency is a given for any commercial enterprise with a sustained record of performance and profitability.

Successful companies operate proactively and with an unabating forward-looking perspective.

Bringing a company into existence is one thing; ensuring that it is successfully passed along when its creators retire is something else entirely.

Family business succession: Fundamental points to consider

It is understandably a source of great pride for a family to contemplate the creation and growth of a prospering company. Keeping that business operative and profitable when making a generational change in management is not an automatic occurrence. As we noted on our website: “It is vital to take steps now to ensure an efficient and trouble-free ownership succession when the time comes.”

How can that be optimally done?

A proven commercial law team can help a client fully understand the business succession process and take the steps necessary to secure long-term company goals. Those include a close focus on matters such as these:

  • Formulating a feasible timetable for planning (preliminary considerations and plan drafting might reasonably commence at least several years before an anticipated management change)
  • A comprehensive review of key company practices, policies and legal agreements
  • Establishment of clear communication channels among all concerned parties relevant to important timing dates and specifics surrounding new duties and prerogatives
  • Creation of a successor training program
  • Setting forth the details relevant to the execution of a final plan

The above-cited succession plan legal source notes that timely attention and energy focused on succession planning can help ensure that a legacy “will be protected for years to come.”

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