Just as every family needs to have a comprehensive estate plan in place, so too should every business make plans for the orderly succession of the business entity from one owner to the next.
Whether a business interest is being sold to new owners, reapportioned among current owners, or transferred to the next generation of family members, it is vitally important that all parties use a framework that facilitates a smooth, principled, financially sound and amicable transition, including:
- Operating agreements
- Buy-sell agreements
- Business valuation methodology
- Purchase agreements
- Asset lien clearance
- Documents of sale.