THE PROBLEM: GENERATIONAL LOSS OF WEALTH IS DIRECTLY PROPORTIONAL TO FAILURE TO PLAN AND MANAGE LEGAL AND BUSINESS AFFAIRS

Only 30% of businesses make it to generation two and a mere 3% still generate profits in generation three. Given the dismal success of family businesses over the long term, it is no wonder that 65% of family wealth is lost by the second generation and 90% by the third generation.

Even if financial wealth is not lost, the vision is frequently lost. Family businesses without an effective wealth and management transfer process typically have heirs working at cross purposes. Disruptive changes of leadership are common. Studies show that values are not transferred to the next generation, and conflicts regarding succession planning cause businesses to fail.

STRATEGY: ADVANCED LEGAL COUNSEL TO PROMOTE YOUR BUSINESS' GROWTH AND PROTECT YOUR WEALTH THROUGH STRATEGIC IDENTIFICATION AND PREVENTION OF THREATS

Such strategy is the most efficient and effective way to serve your business' interests of growing your business to generate new wealth while at the same time protecting existing wealth. Failure to effectively execute this strategy places your business' (and by extension your) financial future and wealth at risk.

 

As Lead Attorney at the General Counsel Division, Pete Lepiscopo and Family Office Law attorneys and professionals will assist businesses and owners of businesses—both large and small—at start-up, exit, and at every stage in between, including, for example: formation, conversion, governance, and dissolution of all types of business organizations; mergers and acquisitions; strategic risk assessment and management; review, correct, and update corporate records and policies; assess existing agreements; drafting and negotiate new agreements; assess pending litigation threats; and conduct state and federal litigation.

SOLUTION: DEVELOPMENT OF YOUR BUSINESS' COMPREHENSIVE LEGAL STRATEGY IS ACCOMPLISHED THROUGH A DELIBERATIVE AND STRATEGIC PROCESS CONDUCTED BY OUR ATTORNEYS IN THE GENERAL COUNSEL DIVISION OF FAMILY OFFICE LAW THROUGH THE FOLLOWING METHODS

STRATEGIC LEGAL SOLUTIONS

Development of your business' comprehensive legal strategy is accomplished through a deliberative and strategic process conducted by our attorneys in the General Counsel Division of Family Office Law through the following methods:

INITIAL MEETING WITH CLIENT'S PRINCIPALS:

• In-person Meeting with client's principals to get acquainted and establish working relationship
• Possible site visit to client's business for purposes of gaining a better understanding of the business and identifying additional threats
• During the in-person meeting, information will be gathered regarding the existing business and legal issues concerning the client

FOLLOW-UP TO INITIAL MEETING WITH CLIENT'S PRINCIPALS:

• Request necessary and specific documents
• Prepare memorandum outlining next steps to be taken, including a proposed budget for legal fees and costs
• 2ND in person or teleconference meeting to discuss memorandum and decide upon comprehensive legal strategy

GOVERNANCE OF EXISTING AND FORMATION OF NEW LEGAL ENTITIES:

• Review and analyze existing legal and business structures for updating, converting, or dissolving
• Pre-formation and formation of new legal entities
• Prepare memorandum providing findings and proposed budget for legal fees and costs to create new or update existing legal entities, update existing legal documents, and/or draft new legal documents

RISK MANAGEMENT ASSESSMENT AND RECOMMENDATIONS:

• Review and analyze corporate records for governance issues and compliance (e.g., articles of incorporation/organization, bylaws, operating agreement, partnership agreement, etc.)
• Review and analyze insurance policies for proper coverage
• Review and analyze existing non-disclosure agreements for scope and effectiveness
• Review and analyze conflict of interest policies and agreements
• Review and analyze intellectual property agreements and licenses
• Review and analyze buy-sell agreements
• Review and analyze stock restriction agreements
• Review and analyze commercial lease agreements
• Review and analyze purchase agreements and/or merger/acquisition agreements
• Review and analyze equipment purchase and lease agreements
• Review and analyze employee handbook, employee and industry classification policies and procedures, employment policies and practices, review time keeping and payroll policies and practices, review arbitration agreements, commission agreements, independent contactor agreements, employment and executive agreements
• Prepare memorandum providing findings and action strategy, as well as proposed budget for legal fees and costs to implement legal strategy

ASSESS SUSTAINABILITY AND SOCIALLY CONSCIOUS ISSUES:

• Review and analyze sustainability and socially conscious issues
• Determine advisability of forming or converting to a benefit corporation
• Determine advisability of pursuing benefit company Certification through B Lab
• Prepare memorandum providing findings and action strategy, as well as proposed budget for legal fees and costs to implement legal strategy

ASSESS AND IDENTIFY INTELLECTUAL PROPERTY AND TRADE SECRETS ISSUES:

• Review and analyze any open/pending patent applications and license agreements
• Review and analyze any open/pending copyright applications and license agreements
• Review and analyze trade secrets policies and protections
• Review and analyze pending letters of intent or proposals, purchase agreements or other license or transfer agreements, and non-disclosure agreements
• Prepare memorandum providing findings and action strategy, as well as proposed budget for legal fees and costs to implement legal strategy

ASSESS PROPOSED AND PENDING PURCHASES OR MERGERS/ACQUISITIONS:

• Review and analyze any open/pending letters of intent or other proposals
• Review and analyze pending purchase agreements or merger/acquisition documents
• Prepare memorandum providing findings and action strategy, as well as proposed budget for legal fees and costs to implement legal strategy

ASSESS PROPOSED AND PENDING REAL ESTATE LEASES, SALES, AND PURCHASES:

• Review and analyze any disclosure documents
• Review and analyze any open/pending letters of intent or other offers/proposals
• Review and analyze existing and pending land or other commercial lease agreements
• Review and analyze proposed or pending lease, purchase, or sales documents
• Prepare memorandum providing findings and action strategy, as well as proposed budget for legal fees and costs to implement legal strategy

ASSESS COLLECTION AND LITIGATION THREATS:

• Review summary of outstanding accounts payable to determine level of collection or litigation threats
• Review and analyze any demands for payments or other threats of collection of past due accounts payable
• If cash flow issues exist, propose payment of accounts payable or other debt obligations through negotiation, restructuring of debt, or other structured payments
• Review and analyze past due account receivables to determine collection approach (i.e., direct collection, assigning to collection agency, or pursue mediation, arbitration, or litigation to collect)
• Review of letters and notices threatening collection and/or litigation
• Analyze collection and litigation threats in conjunction with risk assessment and recommendations
• Prepare memorandum providing findings and action strategy, as well as proposed budget for legal fees and costs to implement legal strategy

ASSESS PENDING LITIGATION:

• Review and assess pending litigation
• Assess whether pending litigation can be immediately settled or transferred to arbitration or some other alternate dispute resolution organization
• Prepare memorandum providing findings and action strategy, as well as proposed budget for legal fees and costs to implement legal strategy

ANALYZE CLIENT'S DESIRES AND PLANS FOR FUTURE AND DEVELOP LEGAL STRATEGY FOR BUSINESS EXIT:

• In-person meeting to determine client's desires and plans for future
• Prepare memorandum providing findings and action strategy, as well as proposed budget for legal fees and costs for implementing legal strategy for business exit

OUTSIDE GENERAL COUNSEL SERVICES:

• In-person meeting with client's principals to discuss details of client's business operations and current inside-outside legal services system
• Assess client's needs to determine scope, duration, and type of legal services
• Prepare memorandum providing findings and action strategy, as well as proposed budget for legal fees and costs for implementing outside general counsel services

ASSESS NEED FOR ADVICE OF OTHER TRUSTED ADVISORS AND PROFESSIONALS

• Assess the need for other trusted advisors and professionals (e.g., specialize legal counsel, accountants, title officers, forensic accountants, trustees/fiduciaries, financial consultants, real estate professionals, etc.)
• Prepare memorandum providing findings and action strategy

STRATEGIC ESTATE & TAX PLANNING SOLUTIONS

In conjunction with the legal strategies developed and employed by the General Counsel Division, Family Office Law's planning and tax professionals will provide sophisticated and strategic estate planning, including for example: estate planning, tax planning, investment counseling, charitable planning, asset protection & insurance, and lifetime income planning & protection.

Businesses accumulate far more wealth when they minimize unnecessary income and capital gains taxes each year. Companies also build greater value when they transfer ownership to future stakeholders using tax-efficient planning tools instead of traditional tools (such as non-qualified stock options and phantom stock programs, which produce substantial ordinary income tax liabilities).

Tax lawyers can develop tax-efficient business succession plans at costs that are often less than 1% of tax savings. Creating tax strategies often requires development of trusts and legal agreements with clear purpose statements and dispositive provisions. For this reason, the tax lawyers must work with company leaders and their advisers to help each business articulate clear purposes in harmony with compelling statements of vision and mission.

We help our business clients incorporate their purpose and mission statements into daily operations. We do this by aligning legal tools with financial strategies. Our staff can analyze and monitor after-tax cash flow as we help clients realize the greatest after-tax benefits. We can illustrate dozens of advanced tax planning techniques that give business owners a competitive edge. This brochure provides a brief summary of strategies. Call us to discuss which techniques can help your business realize the greatest after-tax benefits.

We can illustrate dozens of advanced tax planning techniques that give business owners a competitive edge. This brochure provides a brief summary of strategies. Call us to discuss which techniques can help your business realize the greatest after-tax benefits.