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Business succession plans don’t have to involve heirs

On Behalf of | Mar 18, 2024 | Business Planning

A generation or two ago, when a business owner passed away, their heirs typically took over the company (for better or worse). And while it’s true that sometimes those scenarios still take place, many of today’s heirs have little interest in assuming the mantle of the family business.

Whether it’s a grocery store, a beauty parlor or a funeral home, if your heirs have no interest in taking up the trade, who will succeed you in running it? Below are some suggestions for the successful transition for your business after you pass on. 

Let your partner buy out your share

If your business is co-owned, this is likely the best possible solution to your dilemma. An experienced partner can buy out your ownership interest and the funds will then be distributed according to your wishes.

Allow a loyal employee to take the helm

If you have had a trusted employee by your side for years who knows the ins and outs of your business, they may want to take over the business in your stead. This is a good way to ensure continuity and stability for the company.

Sell it to a third-party

Sometimes the best way to get top dollar is to offer your business for sale to the highest bidder. While this can leave the future of the company in doubt, it may reap the most benefit for your heirs and beneficiaries.

Redistribute your interests

When multiple owners are involved, one course of action for business succession is to sell your interest back to the company and then have it redistributed amongst the surviving owners.

Plan now for the succession of your business

Learning about all the options available to you for the succession of your California business can give both you and your heirs peace of mind.