Practice Areas
Business Succession, Transition & Exit Planning
Protecting the value of a business and achieving long-term family financial goals are at the core of the ScottHulse PC business succession, transition and exit planning practice. We advise clients on the structuring, restructuring, or transfer of ownership of family-owned or closely held businesses to safeguard assets, minimize tax burdens, and, if desired, support philanthropic goals. Our full-service commercial firm and cross-practice collaboration allow clients to benefit from experts in multiple practice areas, such as tax and real estate, in addition to the business succession practice. This collaboration leads to thoughtful, well-documented plans that help avoid costly mistakes and eliminate the uncertainty and infighting that often occur during management and ownership changes.
Our experienced attorneys assist our clients in:
- Defining goals regarding the future of the business and its various stakeholders
- Determining the value of the business for both transactional and tax purposes
- Identifying and evaluating alternative ownership transfer and exit strategies
- Identifying desired beneficiaries and/or identifying potential buyers
- Tax planning to minimize taxes, including property tax, federal and state taxes, generation-skipping transfer tax, income tax, and estate tax
- Establishing, where appropriate, a family limited partnership or limited liability company to enable a transfer of ownership on a more favorable tax basis
- Structuring the sale or gifting of business interests
- Drafting of agreements, including and not limited to operating, partnership, buy-sell, and governance agreements
- Structuring incentives and contracts to retain key employees
- Mediating disputes between shareholders or family members
- Representing the owner and the company in a sale to a third party
Select Representations:
- Advised the owner of multiple transportation-related businesses on matters related to succession planning and tax matters related to the transfer of ownership interests to his heirs and the division of assets and ownership interest among children employed by the family business and children not employed by the family business.
- Represented a family member, who was a minority shareholder in a family-owned manufacturing business, in a leveraged buyout of the business from other family members, including the founder and control shareholder.
- Negotiated, on behalf of one of the part owners, a buy-sell agreement for a corporation owning two multi-million dollar ranches and commercial property in northern New Mexico. The agreement restricted transferability of interests in the ranch to preserve its historic heritage and to keep the ranch in the family. The agreement also was designed to protect shareholders from the creditors of other shareholders from gaining an interest in the entity. The plan included irrevocable life insurance trusts and coordinated estate planning among the various family members. Also advised the client as to additional planning opportunities for reducing exposure to the estate and generation-skipping transfer taxes separate from his siblings.
- Designed a buy-sell agreement funded with life insurance to provide a smooth succession plan for non-related owners of a high-technology, military contractor.
- Drafted a multi-generational estate plan for a fifth-generation ranching family, designed to preserve the integrity of the ranch for the benefit the family members who remained ranchers, yet also provide for family members who choose other paths.
