What Happens to Your Business When You’re Gone? Why Every Owner Needs a Succession Plan
If you’re a business owner—whether you run a solo dental practice, a family-owned LLC, or a growing real estate company—you’ve poured time, energy, and heart into building something that matters. But here’s a tough question:
What happens to your business if something happens to you?
At Franklin & Frankel LLC, this question isn’t just theoretical – it’s one we’ve experienced firsthand. Earlier this year, Scott Franklin, who founded our firm nearly 40 years ago, formally passed ownership of the firm to longtime colleague and partner Aaron Frankel. Scott quite literally “passed the torch” to Aaron during the transition – a symbol of the care and intentionality behind the process.
Together, they focused on more than just legal and financial logistics. Their goal was to preserve the firm’s mission, values, and strong client relationships—ensuring a smooth and steady handoff for both the team and the people we serve. It’s a real-world example of what thoughtful business succession planning can look like: deliberate, personal, and built to last.
Succession planning is not always a pleasant thing to think about, but it’s absolutely essential. Without a solid succession plan, your business could end up in the hands of a probate court, face significant financial losses, or even fall apart entirely.
At Franklin & Frankel LLC, we help business owners across Connecticut and Massachusetts safeguard what they’ve built. Let’s walk through why succession planning is so important—and how to start creating a plan that protects your legacy.
Why Succession Planning Isn’t Optional
Many business owners assume that their spouse, kids, or business partners will just “step in” if they’re no longer around. Unfortunately, it’s rarely that simple.
Without a clear plan, your business could:
- Be delayed in probate for months (or longer)
- Spark costly disputes between family members or co-owners
- Miss out on a sale or trigger unexpected taxes
- Lose top talent or clients due to uncertainty
A well-crafted succession plan ensures there’s a clear, legally binding roadmap for what happens next – whether that’s after death, disability, or retirement.
What a Solid Business Succession Plan Should Include
Succession planning isn’t one-size-fits-all, but here are a few of the most effective tools to consider:
- Buy-Sell Agreements
If you have co-owners or business partners, this is a must. A buy-sell agreement spells out who can buy or inherit your share, how it’s valued, and how the purchase will be funded (often with life insurance). It prevents conflict and ensures continuity. - Operating Agreements with Succession Clauses
For LLCs, your operating agreement should include clear instructions on how ownership transfers in case of death or incapacity. Without this, probate courts – and state laws – will decide, often creating delays and uncertainty. - Trust-Based Planning
Placing your business interests in a revocable trust can help avoid probate, simplify the transition, and provide ongoing support for your family – without involving them in the day-to-day operations if that’s not the plan. - Key Person Insurance
If your business relies heavily on you – or a partner – key person life or disability insurance can provide critical funding to keep things afloat or fund a buyout in your absence. - Successor Preparation
It’s not just about documents. Someone needs to be ready to lead. Whether it’s a family member, a trusted employee, or a future buyer, training and transition planning are just as important as legal paperwork. Identifying a successor before you are ready to retire or sell ensures continuity and makes your business more attractive to potential buyers.
Special Concerns for Healthcare and Dental Professionals
If you’re a licensed provider in Connecticut or Massachusetts, planning your exit comes with added complexity:
- State licensing rules may restrict who can own or operate your practice.
- Some boards require immediate notifications upon your death or incapacity.
- Patient records must be handled in a HIPAA-compliant manner.
We routinely work with dentists, doctors, and other healthcare professionals to ensure their succession plans meet both legal and ethical standards.
Don’t Leave Your Legacy to Chance
Your business isn’t just your livelihood, it’s part of your legacy. Without a plan in place, everything you’ve worked for could be vulnerable the moment you’re not there to lead it.
At Franklin & Frankel LLC, we help business owners craft practical, personalized, and legally sound succession plans that reflect their values and goals. Whether you’re just starting out or preparing to retire, it’s never too early to protect your business – and the people who depend on it.
Let’s talk about how to secure your future. Contact us today to start building your business succession plan.