What is a business succession attorney and what do they do?

business succession attorney is a legal professional who specializes in helping business owners plan and execute the transition of their business to new owners or successors. They provide guidance and assistance in developing a comprehensive succession plan that ensures a smooth transfer of ownership and management.

The primary role of a business succession attorney is to help business owners navigate the complex legal and financial aspects involved in transferring ownership. They work closely with their clients to understand their specific goals and objectives for the succession process. This may include considerations such as preserving the business’s legacy, minimizing tax liabilities, protecting the interests of family members or key employees, and ensuring the long-term viability of the business.

One of the key tasks of a business succession attorney is to assist in the creation of a succession plan. This plan outlines the steps and strategies to be implemented for the transfer of ownership, including identifying potential successors, determining the value of the business, and establishing a timeline for the transition. The attorney helps in drafting legal documents such as buy-sell agreements, shareholder agreements, and partnership agreements that govern the transfer of ownership and management responsibilities.

Additionally, a business succession attorney helps business owners explore various options for transferring ownership, such as selling the business to a third party, passing it on to family members, or transitioning it to key employees through an employee stock ownership plan (ESOP). They provide guidance on the pros and cons of each option, considering factors such as tax implications, financial considerations, and the business owner’s personal goals.

Throughout the succession process, a business succession attorney also assists in addressing potential legal issues and challenges that may arise. They ensure compliance with relevant laws and regulations, handle any necessary filings or paperwork, and help resolve disputes or conflicts that may arise among stakeholders.

In summary, a business succession attorney is a legal professional who specializes in helping business owners plan and execute the transfer of ownership and management of their business. They provide guidance in developing a comprehensive succession plan, assist in the creation of legal documents, explore various transfer options, and address legal issues throughout the process.