Business Structuring & Succession

The smooth succession of a business requires a detailed plan that has been thoroughly   strategized and well executed. All too often, business owners do not plan ahead. Crises such as serious illness, disability or death can create great upheaval and jeopardize the best interests of a company and the people who own it. A carefully considered succession plan should be thought of as another kind of insurance policy essential to the continuation of any business, regardless of its size and structure. Consider these poignant facts from the 2012 PricewaterhouseCoopers Family Business Survey:

♦  27% of family owned business expect to change hands in the next 5 years.


♦  47% of family owned business  have no succession plans in place.

  34% of family owned businesses expect to bypass their families altogether for succession and sell to key employees or outsiders.


The challenges and resistance around succession planning in many family businesses, have resulted in some more unfortunate family business statistics:

♦  Only a little more than 30% of family businesses survive into the second generation, even though close to 70% would like to keep their business in the family.

♦  By the third generation, only 12% of family businesses are typically still viable.

♦  By the fourth generation and beyond, only 3% of family businesses continue to exist.
   
Morris Law Group has significant experience serving the special needs of closely-held businesses. We formulate plans for the transfer of ownership and control of the business from one generation to the next with the intent of minimizing taxes and preserving corporate assets. We prepare restrictive shareholder and partnership agreements and corporate reorganization plans, solve liquidity issues for tax obligations and structure stockholder buy-sell agreements. We also work with clients who have accumulated balances in their 401(k) and profit-sharing plans, as well as their Individual Retirement Accounts (IRAs).