Have you ever heard of a situation -- seen a movie, perhaps? -- where on a given day a business owner simply walks up to a hard-working and dedicated employee and figuratively hands over the keys of the company to that individual, deigning him or her the optimal choice to lead the organization forward?
You might have. Movies regularly churn out feel-good fare along that line.
And they're pure fiction, of course.
Successful business planning doesn't simply happen in summary fashion or a vacuum. When a company changes hands or needs to quickly and proactively respond to something like an executive's incapacitation or retirement, its ability to do so often hinges on the well-considered and timely work that is done internally beforehand.
One online overview of business succession considerations and strategies outlines some general steps that reasonably serve as "a good road map for the process."
Timely lining up key employees who seem best served to take a company into the future or next generation, and training them, is obviously one key focal point.
So, too, is setting a timeframe for when things should happen, which includes a concrete focus on the legal steps and strategies to employ to best effect a principal's departure.
That latter goal, as we note on our business law website at David, Brody & Dondershine, LLP, often breeds a close connection between business succession and sound estate planning, which is a specialized area in which our partners have long practiced and advocated on behalf of diverse business clients.
There are many different ways to achieve desired goals when it comes to business succession, ranging from a principal's outright sale of a company to so-called redemption or cross-purchase arrangements.
Experienced commercial attorneys who regularly help clients in this niche legal area can provide candid guidance and proven counsel geared toward maximally achieving all succession goals.