Business Succession
Ensure the smooth transition of your business to the next generation or new ownership.
Securing Your Business Legacy
Cody, Cody & McCarthy attorneys work closely with business owners to develop succession plans that ensure a smooth transition while preserving the value you've built. We help you navigate the complex legal, financial, and emotional aspects of transferring business ownership.
Cody, Cody & McCarthy attorneys work closely with clients who own their own businesses to develop an understanding of not just the company, but also the owner's long-term business goals. We help clients develop plans to smoothly transition ownership of the company while being mindful of the client's cash flow needs and tax consequences to both current and future business owner.
Key Succession Planning Considerations
Business Valuation
Establishing an accurate value for your business is essential for tax planning and ensuring fair treatment of all stakeholders.
Ownership Transfer
We help structure the transfer of ownership in the most tax-efficient manner possible, whether to family members or third parties.
Management Succession
Beyond ownership, we help plan for the transition of leadership and management responsibilities.
Financial Security
We ensure that your financial needs are met throughout the transition process and into retirement.
The Succession Journey
Current Business
Next Generation
Continued Legacy
Family vs. Third-Party Succession
Comparing the two most common succession paths
Family Succession
- •Preserves family legacy and values
- •Can provide ongoing income for retiring owner
- •May offer more flexible transition timeline
- •Potential for reduced tax impact with proper planning
- •May require addressing fairness for non-participating family members
Third-Party Sale
- •Often provides maximum financial value
- •Clean break for retiring owner
- •May offer better continuity for employees and customers
- •Typically requires more formal preparation and documentation
- •Usually has a more defined timeline
Our Business Succession Planning Includes:
- Comprehensive business valuation strategies
- Tax-efficient ownership transfer planning
- Family business transition planning
- Buy-sell agreements
- Key employee retention strategies
- Integration with personal estate planning
Case Study: Multi-Generation Manufacturing Company
A third-generation manufacturing company with 75 employees faced a critical transition as the current owner approached retirement. The owner's children had diverse interests, with only one actively involved in the business.
Our approach included:
- Comprehensive business valuation to establish fair market value
- Creation of a family limited partnership structure
- Development of a phased transition plan over five years
- Implementation of tax-efficient transfer strategies
- Integration with the owner's personal estate plan
Result: The business successfully transitioned to the next generation while providing financial security for all family members and minimizing tax consequences.
A lot of people have been counting on me for the last 60 years and thanks to Cody, Cody & McCarthy, I can count on that continuing even after I'm gone.
John A*
Easton, Massachusetts
Succession Planning Timeline
5-10 Years Before Transition
Begin succession planning, establish business value, and identify potential successors.
3-5 Years Before Transition
Develop formal succession plan, begin training successors, and address tax planning.
1-3 Years Before Transition
Implement legal structures, finalize agreements, and begin phased transition of responsibilities.
Transition Year
Complete ownership transfer, finalize leadership transition, and implement communication plan.
Post-Transition
Monitor plan implementation, provide consulting support as needed, and adjust as circumstances change.
Related Practice Areas
Explore our comprehensive legal services designed to protect your interests and secure your future.
Estate Planning
Our fundamental estate plan requires approximately two to three weeks to design, draft and implement.
Asset Protection
When it comes to protecting your assets, the little things matter. Our attorneys provide real-world advice on asset protection planning.
Charitable Giving
Our attorneys provide advice on charitable giving which results in tax benefits to our clients and the gift benefit to the charity.
Plan Your Business's Future
Contact us today to schedule a consultation with one of our experienced attorneys. We'll help you develop a comprehensive business succession plan.
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