Lee R. Schroeder is an Ohio licensed attorney with Schroeder Law LLC in Ottawa. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at [email protected] or at (419) 523-5523. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.
Transitioning ownership in a business is never easy, but small businesses face more difficulties than others. Farmers especially can face problems when passing along their farms and equipment. A few steps can be taken to streamline the process and make it as painless as possible.
Make sure everyone involved is on the same page, and both parties will benefit from the agreement. It is also important that current owners are open and honest about the company with the new owner. Lastly, make sure the plan is formally and legally laid out and agreed upon.
Small businesses (including farms and agribusinesses) are recognized as the backbone of our economy. Frequently, but not always, small businesses are family owned. If unrelated people start or own a small business together, they also frequently become close friends.
As a result, transitioning ownership or control of a small business, particularly to or among people who previously worked for each other, is not simple because people’s personalities are not simple.
Read Lee’s full article on business succession in the Lima News here: Legal-Ease: Components of a successful business succession plan
Source: LimaOhio.com, Legal-Ease: Components of a successful business succession plan by Lee R. Schroeder, August 15, 2014