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Preparing a business succession plan

On Behalf of | Jan 20, 2022 | Corporate Litigation

Selling a business in New York and transferring its assets can be a difficult process for any owner. You have to consider how to continue your company’s legacy. Here are a few suggestions to help you obtain the most benefits from your business succession planning.

Select the type of successor

You need a successor to inherit your business and agree to an arrangement. This person could be a co-owner or heir who assumes the new ownership. A company that has multiple owners can agree to share the ownership. Another option is to choose a high-ranking employee like a manager or lead supervisor. If no successor is chosen within the business, it’s possible to sell the business to a buyer on the outside.

Create a leadership team

Overall, your plan should include a list of potential successors in order of importance. Create a leadership structure for every department of the business and rank the leaders in order from highest to lowest ranking. Ideally, the new leaders of the company will have an understanding of business and commercial law.

Include specific details

Every business succession plan must contain specific types of information to complete a successful change in ownership. At the basic level, the terms of the sale and purchase must be included along with the business’s current value.

The next steps to take

A business succession plan that is prepared well can streamline the process of transferring the ownership of a business. A carefully developed succession plan is made to benefit everyone from the departing owner to the current employees and the new successors.