Ensuring the Continued Success of Your Business
Through Business Succession Planning
Anecdotal evidence confirms that it's human nature to delay necessary business continuity, or succession, planning. But the successful business owner knows it's important to plan, not only for personal, but personnel and business matters, which frequently are all one and the same in the entrepreneurial business endeavor. The purpose of a business succession plan is to ensure that when business owners retire or die, or a key personnel change occurs, the business will continue, and heirs and/or other key executives will be able to efficiently carry on the business' plans. As such, the business succession plan also necessarily dovetails with the entrepreneur's estate plan. As economic conditions change, you should review and adjust your plan through the scheduling of personal regular review, with necessary adjustments made in a timely manner.
The key to successful succession planning lies in defining and clarifying your future intentions and objectives, and matching those intentions and objectives with your resources. This process involves examining a number of facets impacting both your business and personal life, including the following:
• Key assets, both personal and business;
• Your relationship with key personnel and/or family members involved with your business;
• Recommendations from your financial planner/accountant;
• Life insurance, disability insurance, key man insurance, and the like, both in place and available;
• Pre- or post-nuptial agreements;
• Your current Estate Planning documents, including your Will and Powers of Attorney;
• Deeds for any real property owned individually or as part of your business;
• The Articles of Incorporation and Bylaws, Certificate of Organization and Operating Agreement, or Certificate of Formation and Partnership Agreement for your business (if not a sole proprietorship);
• Existing Shareholders’ or Partnership Agreements, or stand-alone Buy-Sell/Ownership Restriction Agreements
• Profit and loss and other financial statements for your business;
• Any personal guarantees or sureties for business debts which you have incurred;
• Any employee stock option programs or similar benefits offered to employees by your business; and
• Any retirement benefits or accounts to which you are entitled.
While this process may seem exhaustive and far-reaching, it should not be overwhelming. The business lawyers of OWM Law routinely work with accountants, insurance professionals, and financial planners to ensure the process is completed as smoothly and as satisfactorily as possible, quarterbacking that process to meet your goals. We are available to help you, through the professional services with skills we offer, in a knowledgeable, timely, and efficient manner.
OWM Law is pleased to announce that attorney Joseph K. Koury, Esq., has been appointed Solicitor to the TriCounty Area Chamber of Commerce’s Board of Directors, effective July 1, 2012. Previously, attorney Richard Linderman, Esq., from OWM Law served as Solicitor, a role he assumed beginning in 1985. Mr. Koury previously participated in, and is a graduate of, the Leadership Tri-County program of the TriCounty Area Chamber of Commerce Foundation, Inc. Mr. Koury looks forward to working with the Board and with the President of the TriCounty Area Chamber of Commerce, Eileen Dautrich, in continuing the tradition of service which the attorneys of OWM Law are encouraged to promote.
Kathleen M. Martin, Esq, CELA, has been elected to the Pennsylvania Bar Association Elder Law Section Council as a Council member through 2014.
OWM Law sponsoring First Friday celebration in Phoenixville on 8/3/12, 9/7/12 and 10/5/12 - please visit our table.
David A. Megay, Esq., speaking at SCORE Business Planning Seminars on 9/10/12 and 11/5/12 - "Starting Your Own Business" (contact SCORE at 610-327-2673).
David A. Megay, Esq., speaking at Owen J. Roberts Adult Education Seminars on 9/26/12 - "Legal Issues Surrounding Buying and Selling Real Estate," and on 10/17/12 - "Starting Your Own Business" (contact Owen J. Roberts Adult Education at 610-469-5830).
Read Legal Ease every other Sunday in the Pottstown Mercury.
Watch Legal Talk, brought to you by OWM, on PCTV, Tuesdays at 8:30 on Channel 28, and Thursdays at 9:30 p.m. on Channel 98, or on our website at www.owmlaw.com/legal_talk/legal_talk.php.