Succession Planning Guide for Business Owners

Protecting your business legacy — and the people who depend on it.

Why Succession Planning Can’t Wait

For many business owners, your company is not just your livelihood — it is your legacy. You have built relationships, created jobs, and contributed to the Capital Region economy. But what happens if you step down unexpectedly, retire, or are no longer able to run the business?

Without a plan, the results can be chaotic:

• Disputes between partners or family members
• Loss of key clients or contracts
• Significant financial setbacks for the business and its employees

The data is clear: According to the Exit Planning Institute, over 70% of privately owned businesses in the U.S. will change hands in the next decade, yet only 30% have a formal succession plan in place.

Here in the Capital Region, that means hundreds of Albany- and Saratoga-area businesses could face turbulent transitions if owners delay this critical step.

Two Real-World Lessons

Example of a Successful Transition:
In 2020, Wegmans, the well-known family-owned grocery chain, completed a smooth leadership transition by gradually shifting responsibilities to the next generation over several years. Clear communication, legal structuring, and gradual handover allowed the brand to grow while preserving its culture.

Example of a Struggle Without a Plan:
When Eastern Airlines lost its CEO suddenly in the 1980s without a clear successor, leadership disputes, operational missteps, and a lack of unified vision contributed to the company’s eventual collapse.

The difference? Planning.

Core Elements of a Strong Succession Plan

1. Identify Future Leadership Early
   • Could be a family member, key employee, or external candidate.
   • Local consideration: Businesses in Albany, Saratoga Springs, and Schenectady often benefit from grooming leaders who understand the Capital Region market.
2. Document Ownership Transfer Terms
   • Includes buy-sell agreements, valuation methods, and funding mechanisms (such as life insurance or installment sales).
3. Plan for Taxes and Legal Compliance
   • Federal and New York State tax laws can have a major impact on transitions. Proper planning can reduce tax burdens and avoid surprises.
4. Protect Key Relationships
   • Ensure client and vendor contracts in Capital Region industries (construction, healthcare, tech, hospitality) remain valid and transferable.
5. Create a Timeline
   • Gradual transitions often reduce disruption and allow for mentoring.

Why Business Owners Delay Planning

• Belief that “it is too early”
• Difficulty choosing a successor
• Fear of triggering family or partner conflict
• Underestimating the complexity of tax and legal implications

Unfortunately, unexpected events — from health issues to market changes — can make any delay a costly mistake.

The Capital Region Business Landscape

• Albany and Saratoga are home to thousands of privately owned businesses in sectors from advanced manufacturing to boutique retail.
• The Capital Region Chamber reports that small and mid-sized businesses account for over 70% of local employment.
• A well-executed succession plan not only protects the owner’s interests but also supports the broader regional economy.

How O’Connell & Aronowitz Can Help

Our business law team has helped owners throughout Albany, Saratoga Springs, and the entire Capital Region design and execute succession plans that reflect their goals and protect their legacy.

We offer:

• Succession planning for family-owned and closely held businesses
• Drafting and reviewing buy-sell agreements
• Coordinating with accountants and financial planners
• Structuring tax-efficient transfers
• Dispute prevention strategies for partners and heirs

We do not just prepare documents — we create strategies that keep your business thriving, your team confident, and your family protected.

Getting Started

1. Schedule a Consultation – Meet at our Albany or Saratoga office, or virtually anywhere in the Capital Region.
2. Review Your Current Position – We will help assess leadership, finances, and legal structures.
3. Build Your Roadmap – Together, we will create a timeline and action plan to secure your legacy.

📞 Contact us today at 518-462-5601 or visit oalaw.com to start building your succession plan.