A business succession plan is critical for any modern business. Events such as death, divorce, disability or bankruptcy of an individual shareholder can wreck havoc on a business and ultimately result in lost revenue and, in some cases, corporate dissolution. Too often, companies do not address these issues until the event occurs. Our attorneys have significant experience in drafting complex buy-sell agreements to address both the company's needs and the shareholders' desires. These agreements include transfer restrictions, valuation methods upon various events, exit strategies for shareholders and funding mechanisms to enable the company to continue to operate after the expected or unexpected departure of a shareholder or member. Our clients include individual business owners, limited liability companies (LLCs), S-corporations, C-corporations and professional corporations. Further, our tax expertise allows us to advise clients of the advantages and disadvantages associated with each of these entity formations.

If you are the owner of a closely-held business, your business succession plan may be further complicated by family dynamics. While you may want to provide for your children in a fair and equitable manner by giving each of them an ownership percentage in the business, you may also believe that one child is more capable of managing the business in the future. Our attorneys can assist you in fairly and appropriately planning these arrangements to meet the needs of your family and your business. There are a broad range of asset transfer strategies that can be implemented to minimize the tax implications to you and your heirs and help your business make a smooth transition from founder to second and third generations.

Practice Group: Robert F. Wilson and Nancy R. Crow

Practice Group Contact: ncrow@pwhclaw.com