We note an obvious, though important, point concerning enterprise viability on our commercial law website at the established Dayton law firm of Gottschlich & Portune, LLP.
And that is this: “Success in business begins at the beginning.”
What we mean by that is that choosing the right format (e.g., sole proprietorship, partnership or corporation) is a critically important first-step decision impacting future growth and sustainability. Doing the proper due diligence – homework, if you will – prior to company inception is often what pays biggest dividends down the road.
Doing the requisite diligence later is also what yields success for an owner who has made the significant decision to sever his or her relationship with a created and now profitable entity.
That fateful time duly comes for many company owners, of course, with sentiments ranging from the bittersweet to elation. How a succession outcome is structured is critically important to both the future prospects of a departing principal and an enduring commercial entity.
Owners transfer interests for varied reasons. Sometimes they are eager to begin a new phase of life. Perhaps a current management team is forcing the issue. Health can be a factor. The time might be right for an heir-apparent to step up.
Whatever the case, there are often a number of business succession strategies to consider. A flat-out sale is a common outcome, as is a buy-sell pact scheduled to take effect upon a specified event. Planners often combine traditional business strategies with employment of one or more estate planning moves that can greatly benefit succession-minded individuals. Trusts can be especially creative and flexible asset-transfer vehicles.
Making timely and proper decisions is just as important for an owner transferring business interests as is it for that same person who, as a start-up entrepreneur, thought carefully about formation matters.
Proven commercial law attorneys can help with the process