Assistance from Our San Ramon Business Law Lawyers
When you establish a business, you might not be thinking about handing it over to someone else later down the road; however, a business succession plan can be extremely useful.
It can help ensure that your wishes are carried out concerning the following:
- Succession of interests;
- Training of family members or employees to enter the business;
- Restriction of sales and other transfers of business interests;
- Value of business interests or which valuation method should be used;
- Options available if the entire business is sold;
- Process for the transfer of interests in the business; and
- Funding of those interests so that the business is not damaged by the repurchase of an interest.
Business succession plans can also help give you peace of mind, knowing that all of the affairs are in order. If you want to create a business succession plan, then you should talk to Jahangiri Law Group, APC. You can expect that we will carefully assess your situation and take as much time as is needed to discuss your needs.
Creating a Business Succession Plan in Contra Costa County
When you contact our firm, we can help walk you through the process of drafting a succession plan. First, you will need to choose a successor. Your successor can be a partner, family member, employee, or another person that you feel is capable of taking your place. If you do not want to choose a successor, then you may be able to sell your portion to your business partners or others. Once you make this decision, you should establish how much your business is worth. This can be done with an appraisal by a Certified Public Accountant (CPA) or by valuing your stock according to the current market value.
After your business is valued, then you can proceed to arrange the method in which your business will be transferred. It can be transferred by cross-purchase or entity-purchase agreements. While these both carry out the same purpose, they are used in different situations. Our attorneys can help you decide which one is appropriate for your situation.