Ownership Succession

Ownership Succession Plans

• Is it better to sell to a third party or keep the business in the family?
• Is it feasible to sell to non-family management or employees?
• If you prefer to keep the business in the family, what is the appropriate allocation of shares among family members with differing levels of involvement in the business?
• Once you decide who will own the business, how do they pay for it?
• How will the sale be structured to minimize tax and provide for your financial needs in retirement?

The business may be your family’s largest asset, so it is important to know and consider all your options. We can help everyone involved think through the issues together, to arrive at a plan that has the support of all the key players.

Shareholder Agreements

If a shareholder no longer wishes to participate in the business, the remaining shareholders may want to have control over what happens to the shares of the departing shareholder. A shareholder agreement can reduce the potential for conflict because it clearly defines how a shareholder can leave the business, how the shares will be valued, who can buy them and how they will be transferred.

We can help you negotiate a shareholder agreement that deals with the events most likely to result in a share transfer, including the potential disposition of shares through the shareholder’s estate. We will also work with your legal counsel to develop a shareholder agreement that meets the needs of the ownership group and has the buy-in of all the owners.