The transfer of ownership of a private or family-owned business – whether from one generation to the next or by sale to maximize returns – is a daunting task. Taxes, family discord, the lack of qualified successors, and questions about management and ownership all come into play. Every decision has ramifications that determine the odds of the business surviving the initial and future transitions.
Saul Ewing’s team of business succession planning attorneys advise both individual owners and companies across numerous industries on the sale and transfer of their ownership interests for planned retirements as well as in the wake of unexpected incapacitation or death. We make an assessment of the business’ structure, finances and governance policies, consider the estate planning goals of the business owner, and develop a business succession plan that spells out the details of a transfer. The planning process includes six steps:
- Discovery, including interviews of the senior generation, a review of economic and personal objectives, the business’ health and future in the marketplace, and potential conflicts and challenges
- Goal identification, including analysis of objectives that fulfill the needs uncovered in discovery
- Transition plan creation, including assessment of ownership transfer options, identification of successors and options for the timing of the transfer
- Tax and estate planning, including review of income and estate tax strategies and determination of the source of funds for tax payment
- Transition plan implementation, including management of the process of ensuring that the plan is put into action and addressing challenges that arise
- Post-succession analysis and follow-up on an ongoing basis
Throughout the process, we work in close cooperation with other advisors involved with accounting, life insurance and financial planning, and take into account the emotional intricacies that tend to arise in these transfers.
In addition, the firm advises on and prepares shareholders’ agreements, counsels on plans to reorganize or sell businesses, including sales to employees, and assists with estate planning and dispute resolution.
