Succession planning is an essential component to business continuity, a smooth transition, and effective estate and tax planning.
Succession planning is an essential component to business continuity, a smooth transition, and effective . However, when there are several individuals under consideration for the job, making a decision can be challenging when there is a great deal at stake. Similar to making important decisions about investments, home ownership and other large financial events, asking simple questions can help business owners assess their options and make more informed decisions.
For instance, owners can begin by questioning which of their employees has the best disposition, training, and inherent skill for both managing a company and taking it to the next level. Many small businesses – may automatically consider a relative or a person who has been a leader’s right-hand man as next in line, a recent Forbes article noted. However, this does not automatically mean that the person is the best for the job, and acting on emotion rather than business mentality can lead to leadership problems in the future. Instead, owners may benefit and protect their life’s work by choosing a person who has the best skill set to handle the challenges of ownership.
Choosing a great leader does not always ensure the continuity and success of a company. It’s also critical to think further ahead about existing and future talent pools, and how well these individuals work with the new leader. Promoting a family member or loyal worker to a higher position may leave gaps in existing roles, which should be filled prior to an owner’s departure. This may help ensure a smoother transition.
Lastly, new owners and employees should be well-versed on the financials of the company, particularly as it relates to tax and estate planning. Ensuring new leaders and managers have access to pertinent documents, know which assets they are inheriting, and how these assets will be affected by tax law can help avoid any unwelcome surprises.
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
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