You may own a business in Bucks County that has been in your family for generations, but have you given any thought about who will inherit the business when you die? This is when having a business succession plan becomes important. Without a business succession plan a new owner of the business will be chosen by the court during the probate process and this person may not be the one you would have chosen to fulfill this role.
What should be included in a business succession plan?
A business succession plan should cover several topics. First, it should name a successor. This could be a family member, a business partner or an employee. Second, it should contain a professional, independent valuation of the business. Third, it should state under what conditions it should be implemented. It should include tax planning as well as address any contingencies. Finally, it is important to discuss the plan with your family and employees, so they know what to expect.
Do not forget to develop a business continuity plan
A business continuity plan goes hand-in-hand with a business succession plan. A business continuity plan contains the blueprint for how the business will operate to avoid any disruptions after you pass. It should include a comprehensive operation strategy and it should identify what processes are essential and which are non-essential. It should identify key positions and how these positions would be affected if operations are disrupted. It should provide a review of facilities and how the business will operate if one of these facilities is no longer available. Finally, it should include a plan for protecting critical data systems, infrastructure and applications.
Learn more about business succession planning
Having a business succession plan and a business continuity plan can be the key to keeping your business operational once you pass. This post is for educational purposes and does not contain legal advice. Our firm’s website on may be of interest to those who want to learn more about business succession planning.
