Cherry Hill Business Succession Lawyer
Cherry Hill Business Succession Attorney Serving Clients Throughout South Jersey
What is a Business Succession Plan?
As a small business owner in New Jersey, you have undoubtedly worked hard to build and grow your company. Do you know what would happen to your business if you suddenly passed away or were otherwise no longer able to work? Business succession planning is about making sure that your company is in the best position possible to thrive in the future—no matter what might happen. Our principal attorney Justin L. Scott is an experienced Cherry Hill business succession lawyer. Attorney Scott helps small and mid-sized companies develop fully customized business succession plans focused on ensuring that the company will be able to continue or be sold effectively in the unfortunate event that a crisis arises.
Companies Can Also Benefit From a Business Continuity Plan
As part of a detailed business succession plan, companies in South Jersey should have a detailed business continuity plan in place. Business continuity planning is closely related to business succession planning, but it is not the same thing. Whereas business succession planning is broadly focused on the big questions regarding the future of the company, a business continuity plan is focused on the more narrow issue of navigating a potential disruption in the short term.In other words, a business continuity plan is essentially an emergency plan for a business. It will help you ensure that your company has the right structure in place should something unexpected happen—whether you suffered a health-related problem or there is a local or national disaster. If you have any specific questions about business continuity planning, our Cherry Hill business succession lawyers are more than ready to help.
Five Elements of an Effective Business Succession Plan
Business succession planning is not a one-size-fits-all. To be truly effective, a business succession plan must be narrowly crafted to meet the unique needs of a business owner, their family, and the company. For this reason, every succession plan is different. That being said, business succession plans in New Jersey do tend to share some important common elements. Here are five key areas that will likely be addressed as part of your business succession plan:
- Identification of Successors: First and foremost, a business succession plan must identify successors. You need to know who will be able to step up and lead the company in the future—whether that is a family member, a business partner, or someone who is outside of the current structure of the company. Potential successors should be identified so that your company is not left in the dark during a crisis.
- Transfer Planning: There should be a plan in place for the transfer of business interests. Ultimately, a business will either be transferred into the control of another party through inheritance (usually a family member) or it will be transferred to another party as part of a sale. There should be an effective plan in place for the transfer.
- Valuation and Financial Planning: An essential part of business succession planning in New Jersey is dealing with the finances. You need to know the exact financial position of the business, including the current value of the company. Further, there should be a financial structure in place to allow for an orderly transfer and transition. In some cases, a business succession plan will involve some form of a buy-sell agreement. If you have any questions about buy-sell agreements, our New Jersey business succession planning lawyer can help.
- Implementation Strategies: A business succession plan should include comprehensive strategies and instructions for implementation. Does the future successor or successors have all of the tools and information that they need to take over running the business on a day-to-day basis? If not, there needs to be some advanced planning to ensure that a smooth transition can occur. Too many business succession plans run into problems because not enough attention is paid to implementation.
- Contingencies: Finally, a well-structured business succession plan should always prepare for contingencies. The reality is that things won’t always go exactly as expected—that is why you need a business succession plan in the first place. Within the plan, there should be alternative arrangements to help deal with any issues that might arise.
How the Cherry Hill Business Succession Lawyers at Scott Counsel Can Help
Business succession planning is complicated. At Scott Counsel, P.C., we help entrepreneurs navigate the legal process—so that they have the most effective structure in place to protect their business and personal interests. Among other things, our Cherry Hill business succession attorney will:
- Listen to your story and explain your options;
- Answer any questions you have about business succession planning;
- Help you identify the key issues that must be addressed in your plan; and
- Take action to craft a comprehensive, effective business succession plan.
Every business owner has their own set of unique needs. For business, a well-structured succession plan is a must. With a history of testimonials from former clients, you can rely on our Cherry Hill business succession planning lawyers for personalized legal guidance and support.