Partnership Dispute Lawyer Tampa, FL
Our Tampa, FL partnership dispute lawyer knows that the IRS defines a business partnership as “a relationship between two or more persons who join to carry on a trade or business, with each person contributing money, property labor or skill and each expecting to share in the profits and losses of the business.” Many of these partnership businesses are family owned. In fact, half of all small businesses and 35 percent of Fortune 500 companies are family-owned.
Although the majority of companies are family-owned, less than 30 percent of these businesses make it to the second generation of family-owned operations, and even fewer – 12 percent – make it to the third generation. The key reason most often cited is an inadequately conceived or nonexistent succession plan. Statistics show that less than thirty-five percent of business owners have a succession plan currently in place.
Thinking About Business Succession
Developing a business succession plan requires communication between family members as well as the team of legal and financial advisers involved in the process, including a Tampa partnership dispute lawyer. When developed and implemented properly, a business succession plan can help provide financial security for the present and future members of the business owner’s family.
Developing A Realistic Timeline for Succession
It is imperative that a succession timeline is established and implemented to ensure that a family-owned business can continue to prosper. Many times we have clients come to us with questions about a business succession plan that grossly underestimates the length of time it will take to achieve successful implementation. On average, it takes a period of ten years to successfully transition a business to new ownership. However, business owners frequently underestimate and allow for a time period of only three to five years.
Five Succession Questions for Owners to Consider
Owners who are contemplating transitioning their business can begin the conversation by considering the following five questions:
- What does the business owner want to achieve with the transition?
- What entity is best qualified to assume ownership of the business?
- What entity or entities are most interested in acquiring the business?
- Who are the stakeholders in the business? In business management terms, stakeholders include not only the business owners but the client base, suppliers, employees, and all third-party personnel.
- How amendable is/are the other partner or partners to the succession plans the business owner is making, especially if it involves new ownership?
Call A Business Law Firm Today
When business owners begin to consider their succession ideas and plans it is prudent to consult with an attorney early in the process, especially if there are disputes between the partners. Contact Hoyer Law Group, PLLC to schedule a confidential consultation with a Tampa partnership dispute lawyer and find out what your legal options are.