The Law Offices of Ido Stern » Business Practice

Estate Planning for the Business

Experts estimate that 85% of the crises faced by family businesses focus around the issue of succession. Therefore, in addition to addressing the legal aspects of passing a family business from one generation to the next, our firm helps families meet and overcome conflict that will inevitably occur when a family plans for the succession of the control and/or ownership. Surmounting the challenges of this conflict requires both sensitivity to family dynamics and an extensive knowledge of the wide range of legal disciplines that impact succession issues.

A business owner who fails to prepare and execute a succession plan, and especially one who dies in office, leaves his or her family, business, and wealth in an uncertain state subject to questions about what should be done with the business and attacks by those who wish to take control or have ownership or those who think that they are entitled to ownership or control. It is our goal to counsel our clients through the special challenges faced by the family business ensuring a smooth transition from one generation to the next. Your business is your life's work. While most businesses don't survive long after a change in leadership, our firm can assist in establishing a plan to ensure business continuation and to maximize the return for the founders of the business.

Business succession planning is an investment in the future of your business for the owners, families, employees and clients. Planning is the key to future success for everyone whose efforts have helped the business to grow. The existence of a succession plan emphasizes your commitment to your business's long-term growth and creates confidence with customers, lenders, employees and key suppliers.

The Process

Developing a succession plan is a multi-phase process that begins with the reorganization of equity, updating wills and trusts and reviewing existing insurance policies. Next, Buy Sell Agreements are drafted, compensation procedures are reviewed and an advisory board will be established which will strategize, design and implement employee incentive plans. The process involves the counsel of independent professionals who contribute objectivity, specialized skills and experience. Our firm maintains close working relationships with some of the most skilled financial planners, accountants, and bankers dedicated to assisting our clients in reaching their retirement goals. Once a succession plan has been established, it is critically important that the completed plan be continually reviewed and updated as circumstances change. Business succession plans outline in detail the who, what, when, why, and how changes in ownership and management are to be executed.

Business Preservation and Protection

Because each business owner's concerns are unique, we create plans that give our clients comfort knowing their business is prepared to adapt to change. Working closely with our clients, we identify goals and objectives, potential pitfalls and develop innovative solutions.

Plan for Success

Wealth preservation and protection require an appreciation of the current and future needs of our clients and of those individuals who depend on them. Multi-generational business planning requires cutting-edge legal and tax planning techniques and an appreciation of the human dynamics involved in intra-family matters. Our clients have relied on us to help them make prudent business, financial, and personal decisions.