In the latest edition of Peak NV, attorney Chris MacKenzie of Allison MacKenzie emphasizes the critical importance of business succession planning. Many business owners focus on day-to-day operations, but without a legally sound plan, the unexpected departure, illness, or death of a key leader can create operational chaos, family conflict, and even jeopardize the future of the business.

Succession planning is more than identifying a successor—it requires formal legal documentation to ensure smooth, enforceable transitions that protect both the business and its owners’ legacy. Key legal tools include:

• Buy-Sell Agreements: Define ownership transfer terms for multi-owner businesses.
• Operating or Shareholder Agreements: Outline rights, responsibilities, and succession terms.
• Trusts and Estate Planning Documents: Facilitate seamless transfer in family or closely held businesses.
• Powers of Attorney and Advance Directives: Ensure trusted decision-makers are in place during incapacity.
• Employment and Compensation Agreements: Retain key employees and support leadership transitions.
• Regulatory Compliance Review: Maintain licenses and permits to avoid business interruptions.

Beyond legal documents, effective succession planning involves operational readiness—identifying potential successors, creating training and transition plans, and integrating family or non-active successors into governance structures.

A robust legal plan not only safeguards the business during uncertainty but can also increase its value, signaling stability to investors, lenders, and potential buyers. Chris stresses that engaging legal counsel early, reviewing governing documents, and preparing internal leadership are crucial first steps toward a successful transition.

Business succession planning is a strategic investment in your legacy, your family, and your company. Whether planning for retirement or simply seeking peace of mind, now is the time to take control of your business’s future.

Read the full article in the Fall/Winter 2025 edition of Peak NV to learn more.