Business Law specialist Frank Scott-Ashe considers how our Family Business Legal Team can help your business thrive.Contact Frank on 01225 462871 or complete the Contact Form below. |
Family Business legal team
Many of our family business clients have been with us since their inception. We have seen new enterprises grow and benefit from hard work and innovation. However, the nature of a family business, combining personal and professional relationships, presents unique challenges. Successfully navigating these requires expert legal advice. That is why we have created a dedicated Family Business Legal Team, bringing together specialists from various departments, including business law, private client, and family law.
Here are just a few ways our experts can help your family business thrive.
Structuring your family business
Your business’s legal structure is a crucial factor, influencing everything from remuneration and tax to personal liability, raising capital, and business succession. Choosing the right structure – whether sole trader, partnership, limited liability partnership (LLP), or limited company – is vital.
Importantly, we take the time to understand your business, circumstances, and ambitions. We can discuss the advantages and disadvantages of each option with you, enabling you to make an informed decision. Afterwards, we will assist you with the necessary documentation and Companies House registration (if required).
Establishing clear decision-making and governance
A common problem in family businesses is the blurring of responsibilities for decision-making. To succeed, a family business must operate professionally and efficiently. How will you handle disagreements? What if a family member wants to leave? Conflict and uncertainty can intensify without a clear, practical framework.
We can help you establish a solid governance framework, clearly defining everyone’s roles, responsibilities, and the business’s decision-making procedures. Customising a partnership or shareholders’ agreement to meet the specific needs of the family and the business is crucial. This ‘family business constitution’ provides transparency on processes such as appointing directors, transferring shares, and distributing profits.
Navigating employment law
As your business grows, you will likely need to employ staff, introducing you to the increasing complexities of employment law during both prosperous and challenging times. From drafting employment contracts to ensuring compliance with constantly evolving employment legislation and managing disciplinary procedures and redundancies, there are significant pitfalls for the unwary. However, we shall be happy to guide you through these processes and to introduce you to specialists who can assist.
A fair, responsible, and legally compliant employer avoids costly employment disputes and fosters a positive, productive working environment for everyone.
Drafting contracts
Whether you are dealing with suppliers, customers, or employees, contracts are vital in the business world. Well-drafted contracts provide clarity and certainty, helping to minimise risks. However, it is surprising how many businesses rely on poorly drafted documents, exposing them to uncertainty, risk, and disputes.
Our team can review your current documents and, if necessary, assist you in preparing a wide range of strong, customised documents tailored specifically to your business’s needs.
Protecting personal and business assets
Many of our business clients operate as limited companies, separating personal and business finances. However, there are still situations where you are personally exposed to risk, such as when you provide a personal guarantee for business finance. It is also essential to safeguard the business’s assets. These might include cash reserves, land and buildings, equipment, and intellectual property.
Our team can advise you on the best ways to protect your personal and business assets. Common examples of how we can assist include advising on the use of personal guarantees, reviewing loan agreements, and implementing measures to safeguard business assets from creditors such as, for example, setting up appropriate corporate structures for your business.
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Protecting intellectual property
Your business’s most valuable assets may be intangible. Common examples of intellectual property include your brand, creative works, and inventions. They can all give you a competitive edge and protecting them is crucial to securing your market position.
An intellectual property lawyer may be required to assist you in identifying, protecting, and commercialising your assets by registering patents and trade marks, and drafting licensing agreements. They would also advise you when taking action against anyone infringing rights.
Family business succession planning
Succession planning is among the most critical and delicate challenges faced by family businesses. Who will succeed, and how can a fair and smooth transition be ensured? What are the tax consequences? These are intricate questions demanding careful thought and expert legal advice.
Our team can guide you through this process from start to finish, developing a detailed plan that reflects your wishes and protects the long-term interests of the business. This might include updating Wills, creating trusts, or having in place buy-sell agreements. A well-considered plan can help you avoid family disputes, reduce tax liabilities, and ensure your business continues to prosper.
Family business acquisitions and sales
Acquisitions and sales are complex transactions with significant financial and legal implications. Securing the appropriate professional advice from your lawyers and accountants is essential for achieving the best possible outcome and protecting your interests, while also ensuring the transaction is structured in the most tax-efficient manner.
We can guide you through the entire process, from introducing you to a valuer or broker and carrying out due diligence to negotiating terms and drafting the necessary legal documents.
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We are committed to helping your family business thrive, and our team has the knowledge and expertise to ensure that you can navigate all the challenges you face as your business continues to grow and prosper.