WHAT IS IT?
A Business Succession Plan is a legal framework which dictates how an owner or partner's portion of a company may be handled in the event of that partner's departure, death, or other life-altering event.
Allows an owner or surviving partner to receive a predetermined value for their shares of the company
HOW DOES IT
WORK?
A legally binding contract is established between existing partners at a company. This contract allows said company to lay out a set of rules and steps which must be taken in order to ensure that the business is protected and any value or investment is paid to the purchasing parties at a predetermined value.
WHAT ARE THE
ADVANTAGES?
Having a Business Succession Plan in place enables a business at large to be prepared for unavoidable situations which may prove to be difficult, time consuming, and draining on the partners and the business as a whole. It should ensure that shares of the company can not be sold to outside investors without approval from the remaining partners/owners. The Plan should lay out the framework for determining the value of the Business at large and a Funding mechanism that will be used to purchase the deceased partner's share.