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Transfer of business in succession

If not only shares but also operations, employees, contracts and operational responsibility move, the succession must be aligned legally and organisationally. Employment law, contract continuity and liability should not be checked only on the handover date.

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What actually transfers

First, distinguish whether shares, a business, part of a business or only individual contracts are transferred. The legal consequences differ significantly.

Separate shares and business
Capture contracts and permits
Consider customer relationships

Employees and responsibilities

In an operational transfer, responsibilities must be communicated clearly. Employment law issues belong early in preparation.

Plan employee information
Secure continuity
Define responsibilities after target date

Ongoing contracts and liability

Suppliers, banks, leases, leasing and securities may contain their own approval requirements or liability risks.

Prepare contract list
Review banks and securities
Read leases and leasing contracts

Interface with a transaction

If an external buyer or management buy out is being prepared, succession planning overlaps with a business purchase process.

Identify buyer process
Prepare due diligence
Separate warranties and liability

Typical client questions

Which contracts must be reviewed before handover?
What happens to employees in succession?
When does succession become a business purchase process?

Preparation checkpoints

Describe what is transferred
Capture employees and key people
Collect ongoing contracts
Note liability questions
Involve transaction counsel if buyers are involved