If you own a family business, retirement is not simply a matter of deciding not to go into the office anymore. You have got some critical questions to answer like...
The family dynamic complicates the whole transition because of the relationships and emotions involved. Most people are not comfortable discussing topics such as aging, death, and financial affairs.
Comfortable or not, succession planning should be a priority for any family business considering that more than seven out of ten family-owned businesses fail to survive the transition from founder to the second generation, typically falling prey either to estate taxes or family discord - or both.
Developing and implementing a well-designed succession plan is essential to the survival of a family business from one generation to the next.
We help you with these key issues -
Are you going to pass the business on to your family or sell it to a third party? We help you weigh the advantages and disadvantages of each of these options.
Management and ownership are not one and the same. You may decide to transfer the management of your business to just one of your children but transfer equal shares of business ownership to all your children, whether they are actively involved in the business or not.
The tax burden when transitioning a family business can be significant. The challenge is that a family business is not generally a liquid asset, but taxes are typically due when ownership is transferred.
Transferring family ownership often adds a tremendous amount of stress to individual family members. We talk with each of the family members to ensure that they feel they a getting an equitable and fair share of the pie.
Once we understand how you feel about the key issues above, we begin constructing your succession plan focusing on these 5 issues.