Business Succession Planning

Building a business, especially from the ground up, is more than just a source of income; it’s a source of pride. If you hope to pass your business down to your children and grandchildren, it’s also a legacy. But the reality is that most family businesses don’t endure for long after the founder steps down or dies.

Only about 30% of family businesses survive into the second generation. Even fewer, roughly 12-15% percent, make it to a third generation. Those that do survive and thrive don’t make it by accident; business succession planning plays an important role in making the transition a successful one.

At Sanz Law PC, we have great respect for individuals who have created a flourishing business, and we understand what it can mean to a family to carry that business forward for generations. To ensure that your business has the best chance of continued success even when you are no longer at the helm, contact Sanz Law to schedule a consultation.

The Importance of Business Succession Planning

Every business, like every family, is different. That means every business needs planning customized to its unique needs. Attorney Jimmy Sanz understands firsthand the importance of laying the foundation for a smooth transition between owners or managers of a business. As with handing off a baton in a relay race, preparation and training can be the difference between gaining momentum and making costly mistakes.

Ideally, business succession planning begins long before the current management of the business plans to step down. The first step is identifying the next leader or leaders of the business—and ensuring that they are willing to take over. The next step is to equip them with the necessary skills and experience to assume leadership when needed, so the business can move forward with a minimum of disruption.

When the next generation of leadership is well prepared, you can retire with peace of mind confident that the business you built is in good hands. And when you have been laying the foundation for a transition for years, a health emergency or other sudden event requiring a change of leadership will not throw the business into turmoil.

How a Business Succession Planning Attorney Can Help

Planning for the future of a business, especially a family business, poses many challenges. A business succession planning attorney can help you navigate issues like:

• Identifying the traits, vision, and experience needed in a successor
• Choosing one family member over another to lead the business when you step down
• Estate planning when one or more heirs are involved in the business, but others are not
• Finding a successor when no family members are willing or able to take over the business, such as a longtime employee or a competitor who may be willing to buy the business
• Conflicts between older and younger generations over the future direction of the business
• Maintaining the cultures and values of the business while adapting to changes in the industry, technology, or markets
• Challenging family dynamics such as sibling rivalry or estrangement that complicate planning
• Tax issues caused by a transfer or transition
• Communicating your succession plan to those who need to be aware of it

Without proper planning, power struggles between possible successors or a lack of preparation are common. Attorney Jimmy Sanz will help you identify and plan to avoid pitfalls that could damage your business or your family relationships.

Work with a Skilled Business Succession Planning Attorney

Business succession planning exists at the intersection of business, estate planning, and tax law, but it is not simply a legal and financial matter: it’s a deeply personal one. Attorney Jimmy Sanz spent many years working in his own family’s business before establishing his law practice. His firsthand experience in a family business, as well as his focus on tax and estate planning law, makes him a skilled and thoughtful advisor for business owners contemplating the future.