It’s important for all business owners in Florida to make plans for succession. Whether it’s brought on by a death or retirement, a company will need to change hands at some point. This will be less complicated if family members are already part of the business and ready to take over. However, it is more common for the situation to be more complex.
One situation might involve a family member who is not quite ready to step into running the business. This will require a strong team of managers as well as good business succession planning. The owner should think about how to keep people motivated. There may need to be a plan in place to train the family member and prepare that person to run the business. Furthermore, it’s wise to have a backup plan to sell the business. Another approach is to put much of the work into preparing the business for sale while also allowing for the possibility that an uncertain family member may decide to commit to the company.
In some cases, there may be a manager who hopes to take over. The business owner could arrange for the manager to purchase the business over time.
This type of succession planning should be part of the larger process of estate planning. Some of the same principles of estate planning can apply to succession planning. For example, in both types of planning, it can be helpful to communicate with beneficiaries and successors about the strategy. Both estate and succession planning should also be reviewed from time to time to ensure they remain current. An attorney could help with this process.