As a business owner, it is likely that a significant portion of your family's wealth and source of income is tied up in the family business. Irrespective of a business's size, the death of a director, or indeed the sole director, can have wide-ranging consequences for a business.
That's why it's essential to give proper consideration to how a smooth transition to the next generation, or sale at a fair price to someone outside of the family, can be achieved following your death. There are important practical considerations, both long and short-term, which arise on the death of a key family and business member.
Alternatively, you may be ready to step away from your business now or at a defined point in the future. Whether you're thinking of selling your business or passing it on to a family member or employee, succession planning may be what decides whether the business continues to succeed or falls apart under the new leadership. Various family business studies estimate that only 30 percent survive the transition from first- to second-generation ownership. If you would like your business to outlive you, succession planning and training is vital.
Our team of business specialists can help you to cover all these bases. We'll listen carefully to what you are looking to achieve and when. We can then help you to legally document your decisions to ensure that your wishes are carried out as tax efficiently as possible for everyone involved. We can even be involved in helping you choose and communicate with your chosen successors, or discuss with your business partners and family what you would like to happen to your share of the business after your death.
All businesses experience issues with their suppliers, customers and other businesses with whom they work. Sometimes, the owners of a business fall out. Our experts can give you the advice you need to agree robust contracts that develop the relationship between you and those with whom you are in business, preventing expensive and time consuming disputes if things go wrong.
We can help your business:
- Adopt standard terms of business (and train your staff on how to use them properly)
- Draft and negotiate bespoke contracts that work for your customers and suppliers
- Build joint ventures with other businesses so they succeed for both you and the business you are working with
- Draft and negotiate partnership or shareholders’ agreements to define the relationship between the owners of your business
- Put Wills, Lasting Powers of Attorney and any other key documentation in place to give you certainty about what will happen to the shares in your business if you or one of your business partners dies
- Help you plan to leave your business and get your business in good shape for when you leave
Getting the right things in place really isn't a difficult as you might think: we can take you through it every step of the way, and give you the fantastic peace of mind of knowing that you and your business has the protection you need.
We're always around for a friendly initial chat over a coffee. Give Carl Selby a call on 01865 594265 or email Carl.Selby@hedgeslaw.co.uk.