Business Succession Planning

Succession planning is the process of planning how a business owner will exit or retire from his or her business and how the business will continue to grow and thrive. Your succession plan could involve a sale to an employee(s), a third party buyer or a transfer of the business to your children. Based on your individual goals and the nature of your business, our Business Planning Department can help you prepare to exit your business with a tax efficient structure and a good operational plan. We work with business owners to address the unique needs of the business by: (i) creating a succession plan; (ii) building value for your business, through such vehicles as creating incentive plans for employees and/or the next generation, restructuring the business entity, and working with you and your management teams to increase value in the business; and (iii) executing the succession plan at the right time.

Creating the Succession Plan

Your succession plan may consist of any one or a combination of the following:

  • Sale to an Employee or group of Employees
  • Sale by means of an Employee Stock Ownership Plan (ESOP)
  • Sale to a Third Party, such as a Competitor, for Cash or Promissory Note payments
  • Merger with a Competitor or Stock Swap
  • Transfer of the Business to your Children or Family Members (Part Sale/Part Gift)

Brown & Streza can help you identify the personal and familial goals that will drive the right exit strategy for you and your family. We work with you, your accountant, business advisor, financial planner, and investment banker to address the current business market and trends, appropriate techniques to add or improve value, and create the legal documents to make your plan a reality.

Increasing Value

Once we have created a succession plan, our legal team works with you and your transition team to improve your valuation and prepare your business for a successful transition to the next owner. With every succession plan, the transition phase is crucial to ensure that you receive and keep the most value from your business. Brown & Streza will review the tax, legal and operational consequences of your plan and take steps to reduce taxes and increase value.

Executing Your Succession Plan

Some succession plans take months to execute, some take years. Most transitions from one generation to the next take a lifetime. We will work with you throughout the transition to determine the right time and method to complete the transfer. The more time we have to work with you the more money we can put into your pocket (or value to your heirs) at the completion of your succession plan.  Contact us early and let our Business Attorneys help turn your dream into a plan of action.


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