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.
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
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