BUSINESS SUCCESSION PLANNING
Houston Business Succession Planning Attorney
Protect the future of your business with a clear plan for changes in ownership, leadership, and management.
Serving Harris, Brazoria, and Montgomery Counties.
PLAN AHEAD
Prepare Your Business
for the Future
A successful business may represent years of work, financial investment and personal commitment. Without a succession plan, retirement, incapacity, death, or the departure of a key owner can create uncertainty for family members, employees, partners, and customers.
Business succession planning establishes how ownership and management should continue or transfer when an owner can no longer lead the company.
Attorney Megone Trewick helps business owners develop succession strategies that support their personal, family, and business goals.
SUCCESSION PLANNING BASICS
What Is Business Succession Planning?
Business succession planning is the process of preparing for the future transfer or continuation of a company. A plan can address who will own the business, who will manage daily operations, and how a transition will be funded.
Depending on your circumstances, the plan may involve:
- Transferring the business to family members
- Selling ownership to a partner or co-owner
- Transitioning ownership to key employees
- Preparing the company for sale to an outside buyer
- Establishing a plan for temporary management
- Coordinating business interests with your estate plan
- Creating a method for determining business value
- Providing instructions for retirement, incapacity or death
The right strategy depends on the business structure, ownership arrangement, financial position and goals of the owner.
KNOW WHEN TO PLAN
When Do You Need a Succession Plan?
Succession planning should begin before an immediate transition becomes necessary. Consider creating or updating a plan if you:
- Own a closely held or family business
- Have one or more business partners
- Expect family members to continue the company
- Want key employees to assume ownership
- Plan to retire or sell the business
- Depend heavily on one owner or manager
- Want the company to continue after your death
- Need to provide financial value to your family
- Have not addressed incapacity or an unexpected departure
Starting early provides more time to identify successors, prepare leadership and address financial or legal concerns.
KEY PLANNING ELEMENTS
Important Parts of a Succession Plan
Selecting a Successor
Your successor may be a family member, co-owner, employee, trust, or outside buyer. The right choice should be based on ability, interest, experience, and the long-term needs of the business.
Transferring Ownership
The plan should explain how and when ownership will transfer. It may involve a sale, gift, inheritance, trust, or another arrangement suited to the business and owner.
Planning for Management Continuity
Ownership and management are not always transferred to the same person. The plan should identify who can make decisions and maintain operations during a temporary or permanent transition.
Establishing Business Value
An agreed valuation method can reduce uncertainty when an owner retires, dies, becomes incapacitated or leaves the company.
OWNERSHIP TRANSITIONS
Buy-Sell Agreements
A buy-sell agreement can establish what happens to an owner’s interest after a triggering event. Depending on its terms, the agreement may give the business or remaining owners the right or obligation to purchase that interest.
A buy-sell agreement may address:
- Death or incapacity
- Retirement or voluntary departure
- Divorce or bankruptcy
- Disputes between owners
- The method for valuing an ownership interest
- Payment terms and funding arrangements
- Restrictions on transferring ownership
The agreement should be coordinated with the company’s governing documents, insurance arrangements, and each owner’s estate plan.
CONNECTED LEGAL PLANNING
Coordinating Business and Estate Planning
Your business may be one of the most valuable assets in your estate. A will or trust should not conflict with a buy-sell agreement, partnership agreement, or company governing document.
A coordinated plan may include:
- Wills and trusts
- Business valuation provisions
- Powers of attorney
- Instructions for digital and financial records
- Buy-sell agreements
- Plans for family members who will not join the business
- Ownership-transfer documents
- By-laws and operating agreements
- Life insurance arrangements
Coordinating these documents can help protect the company while providing clearer direction for your family.
WHY TREWICK LAW FIRM
Why Choose Trewick Law Firm?
Broad Legal Experience
With more than 18 years of experience, Megone understands how business law, estate planning, real estate, and family concerns may intersect.
Personal and Business Planning Combined
Megone considers the needs of the business owners, members, company, family and intended successor(s).
Practical Transition Guidance
Your plan is developed around realistic ownership, management, and funding considerations.
YOUR QUESTIONS ANSWERED
Frequently Asked Questions
When should I begin succession planning?
Planning should begin well before retirement or another expected transition. Early preparation provides time to select and develop a successor and address legal or financial concerns.
Can I leave my business to my children in my will?
Possibly, but the will must be coordinated with business agreements, ownership restrictions, and the abilities or interests of the intended beneficiaries.
What happens if a business owner becomes incapacitated?
Without a plan, management and ownership decisions may be delayed or disputed. Succession documents and powers of attorney can provide clearer authority.
START PLANNING TODAY
Build a Plan for Business Continuity
Trewick Law Firm can help you evaluate potential risks and develop a lawful plan for protecting your personal, family, and business interests.
