Business succession planning attorney Yana Feldman of New York Legacy Lawyers has published an enlightening article addressing the crucial topic of business succession planning. The article underscores the significance of having a well-structured succession plan to ensure the seamless transition of business ownership and management in the event of unforeseen circumstances such as death, illness, or retirement.
The business succession planning attorney emphasizes that a company’s survival often depends on its ability to smoothly transition its leadership. Feldman states, “A company without a succession plan can face significant turmoil when an owner or key manager is suddenly unable to continue their role.” Without such a plan, businesses, whether small or large, may find themselves scrambling to identify and install a suitable replacement, leading to potential instability and disputes.
The article details the ramifications of not having a succession plan. Business succession planning attorney Yana Feldman explains, “Without a documented succession plan, the stakes of shareholders or owners might be transferred to family members or other shareholders, often resulting in conflicts. This is particularly common in family-owned businesses where some members might feel more entitled to larger shares due to their involvement in daily operations.”
In larger corporations, the absence of a succession plan can instill fear of instability among clients and employees. Feldman notes that remaining shareholders might struggle with the resources needed to buy out a deceased shareholder’s stake, potentially leading to disputes and a stalling of progress. “This situation can result in the spouse or child of the deceased shareholder attaining an ownership stake, causing operational disruptions and possibly asset losses,” says Feldman.
Yana Feldman highlights the importance of addressing key matters in a succession plan to maintain business continuity. These include keeping business shares within the family, giving key employees additional shares, minimizing estate tax impacts, and ensuring sufficient cash flow for tax payments or buy-outs. Feldman asserts, “A comprehensive succession plan should also include provisions to maintain ‘institutional memory’ and establish a family employment program with clear guidelines for employing and supervising relatives.”
When it comes to identifying potential successors, Feldman advises business owners to consider several factors, including the readiness and capability of successors to take over. She mentions, “It’s crucial to evaluate the skills and preparedness of potential successors, whether they are family members or external candidates, and to provide appropriate motivation and incentives to ensure their commitment to the business.”
The article also discusses the timeline for transferring control and the importance of a gradual transition where the outgoing owner can mentor the successor. Business succession planning attorney Yana Feldman elaborates, “A phased approach allows the outgoing owner to stay involved in strategic activities and ensure a smooth handover.”
For business owners, having a detailed and strategic succession plan is crucial not only for maintaining operational continuity but also for safeguarding the business’s legacy and investment. Business owners are encouraged to consult with skilled lawyers to explore the development of a robust succession plan.
Business succession planning lawyer Yana Feldman and her team understand the complexities involved in succession planning and the importance of preparing for the future. Their services are designed to provide peace of mind and ensure the long-term success of their clients’ businesses.
About New York Legacy Lawyers:
New York Legacy Lawyers is a reputable law firm focusing on estate planning and business succession planning. With a team of experienced attorneys, the firm provides personalized legal services to help business owners protect their assets and ensure the seamless transition of their businesses. The firm also offers services in special needs planning and Medicaid planning, addressing a wide range of estate planning needs for clients in New York.
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Email: yana@yanafeldmanlaw.com
Website: https://yanafeldmanlaw.com/
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Company Name: New York Legacy Lawyers by Yana Feldman & Associates PLLC
Contact Person: Yana Feldman
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Phone: (718) 713-8080
Address:132 32nd St #301
City: Brooklyn
State: New York 11232
Country: United States
Website: https://yanafeldmanlaw.com/
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