1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

Texas Business Succession Attorney’s Quickstart Guide to Planning (Part 1)

Texas business succession attorney, Richard “Ric” Armstrong, discusses the importance of planning for the future of your company.

A couple of years ago, CNBC released a poll with profoundly disturbing statistics. It found that nearly 80% of business owners planned to fund their retirements from their company, but fewer than 30% of these entrepreneurs actually had a clear, written succession plan. Consider what that means: if the CNBC survey data is accurate, that indicates that more than half of all business owners are unprepared for a disruptive event that’s set to occur with 100% certainty. (You cannot run your company eternally, after all, unless you stumble on the fountain of youth!)

In business, nothing good happens without a plan. Yes, plans inevitably change. But the act of strategically thinking about the future makes you more nimble and adaptable. (As former President Eisenhower eloquently put it: “In preparing for battle I have always found that plans are useless, but planning is indispensable.”)

Whether you intend to sell your business upon retirement or hand it over to a family member, you need a solid succession plan in place to protect your company interests.

What Is Succession Planning?

Just as estate planning addresses how your property and wealth will be distributed when you die, succession planning addresses what happens to your business when you leave it—who will own the company, who will run the company, how the assets will be managed, etc. Careful succession planning requires more than just detailing who-gets-what; it also involves grooming your successor, establishing best practices for tax savings, outlining ownership stakes, and so on. With family-owned businesses, you also must consider the role your children and other family members will have in the company… and how to minimize the risk of family conflict.

Why You Need to Prepare for Succession Now

Your company is an asset—and dynamic, ideally growing asset, at that. If you pass away or become disabled without a plan in place, confusion, chaos and conflict can reign as interested parties decide what happens to your company. A well-structured plan ensures your legacy, prevents in-infighting, and enables you to retire in peace or start a new endeavor without distraction.

In Part Two of this discussion, we’ll dive into more technical details that you need to know. For smart help now, consult with a Texas business succession attorney at Armstrong The Law Firm, P.C. by calling us at 972-424-L-A-W-S (5297).

www.planobusinesslawyers.com

Richard L. Armstrong, Principal

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

Fort Worth Location (By Appointment Only)
5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297