subject: The Importance Of A Smooth Business Succession [print this page] You may have heard or read in the news about a successful business empire suddenly fall in disarray after the demise of its owner, who also happens to head the companys management team. Such devastating blow might have been averted if there was a smooth business succession so that capable managers would continue to make the conglomerate very prosperous. Now, this is a situation that can happen even to small businesses if there is no established succession plan.
The approach to a smooth business succession is multi-tiered. The first tier usually involves the management of the firm. Contrary to what other people suppose, management and ownership are distinct from each other. In most cases, a professional management team is usually put in place to oversee the operation of the company.
The next involves the owners themselves. While some owners would like all their children to be involved in their business empire, others prefer only those who show competence in leading the conglomerate. For instance, one child has showed greater aptitude in business than his brother, it is always presumed that he will inherit more responsibilities, even to the point of taking the reins of the conglomerate.
The third tier involves the settlement of taxes. Bear in mind that estate taxes on its own can cut a huge slice on the value of the business. At this point, it would be a step in the right direction to hire the services of a law firm in Ottawa. They have expert lawyers who can work in conjunction with your accounting and investment advisors to devise strategies on how to best preserve the assets and liquidity of the company in the face of these taxes.
As a matter of fact, the lawyers of a llaw firm Ottawa Ontario has could help establish a gifting program that can be used to minimize, or even eliminate, estate taxes. These expert lawyers can also advise the owner whether these gifts can be given outright or hand them over in trust. This is because it would protect the children of the owner against creditors or predators that are always looking for ways to get a slice from the assets of the company.
Lawyers from any llaw firm Ottawa Ontario has understands the fact that your business is the product of a dream that you worked so hard to accomplish. Handing the reins of the company to a capable management team, with its assets intact, is therefore very important to maintain the prosperity of the company. These lawyers can help you do that in a way that your dream turned reality will be preserved for all eternity.
by: JillPell
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