MONEY
PLANNING FOR SUCCESS An attorney's guide to succession planning
Y
ou've put blood, sweat, and tears into your pharmacy business.
Many owners are hesitant to create a succession plan because it
You care about what you've built and the people you take
means confronting the most distressing possibilities. ″It does cover
care of. The last thing you want is for all your hard work and your
a number of scenarios and topics that maybe you don't really want
relationships to dissolve after you retire, leave your business, or
to talk about,″ Brehmer said. ″But going through the process now
worse, pass away.
when it's not a matter of concern is way more advantageous than
having to think about it once something happens.″
Succession planning ensures you leave your pharmacy in the
hands of someone you trust, preserves your future, and protects
your partners or family. Attorney Matthew D. Brehmer of Remley
they need to start thinking about succession, there is no better
Law, S.C., defines succession planning as ″putting together a plan
time than right now. ″The day you enter your business is the best
to make sure the transition of your business goes well in the future.
time to start planning for your eventual exit,″ Brehmer said. ″Not
It's a comprehensive road map to make sure you successfully exit
only does it put a plan in place in the event one of these scenarios
your business at some point.″
plays out, but it also helps maximize the value of your business.″
Although owners may think they have plenty of time before
This definition includes a diverse set of circumstances, even
though many business owners tend to define it narrowly. ″People
CREATING A SUCCESSION PLAN
often think it means, 'Well when I want to retire or sell my business,
A succession plan starts with your business's foundational
this is the plan I need to have in place for that process,'″ Brehmer
documents. These are articles of organization or articles of
said. ″While that is true, there are other instances that can occur in
incorporation that register your business with the state. They also
life that require succession planning, too.″
include an operating agreement or bylaws, depending on if you're
an LLC or a corporation. The documents cover governing rules for
The other instances are referred to as the five Ds: death,
disability, divorce, disagreement, and distress. ″These are all things
how your business is run, like whether you have annual meetings,
you likely do not choose or think will happen when they do. Getting
how decisions are made, how your business is wound up, how
that plan in place now helps you through that process.″
distributions are handled, how you are taxed, and more.
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