Preparing a will, division of the estate or planning a succession can be extremely taxing where people can be easily misguided into making wrong decisions. People spend decades in figuring out a specific and the perfect way to plan a succession or dispense the assets. Not only does it put the right people in the right place, but it reduces the chances of the claims of inheritance. Such a plan of succession is of utmost importance and one needs to acknowledge the fact that having this plan can benefit your company even after you are long gone. This is why, family run businesses hire extremely adept family lawyers to prepare an ideal succession plan for them. We shall take a look at how exactly can a succession plan help you and your business.
- No abrupt changes
One of the most crucial aspects of having a well organized succession plan is that there is no chance of any sudden or abrupt changes in the leadership. It is the leadership of any company that drives the employees and the company’s position in the market. If the position is vacated suddenly due to ill health, dismissal or resignation, the impact can affect the company in several ways. On the contrary, a succession plan usually involves a potential person who can take over the business without any major changes taking place. A succession plan thus involves anticipated moves that are beneficial.
- Clear communication
Succession planning is deemed to be strikingly significant for any family run business in specificity, because otherwise, feelings of estrangement and jealousy are often faced by the family members. A succession plan is in fact effectively communicated to all the members of the family. By the time a transition is necessary, all the members of the family need to be on the same page. For this purpose, people hire proficient family lawyers that are quite adept at such dealings.
- Maintaining shareholders trust
Whether the company is privately held or not, it is the shareholders trust that decides the future of any company. When you have a well defined, structured and communicated succession plan, it sends a loud message to the board members and the investors that you are actively planning for the future of the company and that their interests shall be protected in the future as well. An unexpected vacancy on the other hand can hamper your business dramatically as you would lose the trust of your board members.
Irrespective of whether it is a public or a privately owned family business, having a succession plan has become the need of time today, where companies without one, can face major issues. Avocat Succession Litvack Dessureault LLP has a well adaptive and adroit group of family law attorneys who can help you with respect your succession plans.