A good business lawyer in Lee County North Carolina knows that the best time to plan for the end of the business is at the beginning. At this point in time, there likely is no conflict as the business owners are forging ahead on a new path. A business lawyer in Lee County North Carolina can help develop a thorough succession plan for the business.
Succession planning allows the business owners to determine the lifespan of the business and how it will continue even if the business owner is no longer around to run the company, either because of death or his or her own preference or that of the remaining business owners. A clear succession plan begins by identifying the goals of the business in regard to how it will endure after a business owner’s departure. For example, if the business is a family business, there may be a desire to keep the business in the family. If the business is a corporation, there may need to be provisions regarding possible buyouts of other owners.
The succession plan should echo the business’ shareholder agreement, partnership agreement or similar agreement that highlights how ownership interests can transfer. A clear decision-making process should be employed to determine important decisions during a time of transition. This succession plan should be disseminated to others in the business that has a stake in it, such as shareholders or family members.
The succession plan may name a person who will take over. Alternatively, it may provide a process to vote on the new head of the business. Additional support personnel may also be identified to help with periods of transition. By taking the time to draft such a plan, the steps will be in place when the time comes to implement them.