As strong a force as the family business is in the American economy, it is also a fragile force. Less than one third of family businesses survive the transition from the first generation to the second generation, and only about 15% survive the transition to the third generation1. As Baby Boomers near retirement age, they are faced with the reality of transferring their own family businesses and are yet woefully ill prepared to do so. But it’s not too late. With careful consideration of the options, and even more careful planning, family business owners can develop succession plans that can help their businesses live on well into the future.
This section discusses the various steps your family can take to ensure the transition – or sale – of your family business from the current generation is one that works for you and all the members of your family.
Establishing a business succession plan is important for any company, but for family owned businesses it’s an absolute necessity.
Business owners should begin succession planning early in order to ensure the continuity of management, goodwill, operations and their client base in the event of the owner’s departure.
It is important to examine how life insurance plays an essential role in the typical family business succession plan.
Because the majority of family businesses do not successfully pass from the founding generation to the next, it’s important to take formal steps to ensure that this legacy you’ve built lives on to provide for your family’s future generations.
If you’ve decided to sell the business, there is a great deal of preparation that needs to be done first. This article explains how you can prepare the family, the employees and the business itself for the sale.
You could say that succession planning is success planning. But it is important to consider the stage of business your organization is in to properly devise the right kind of plan.
There are a variety of benefits to establishing an FLP/LLC entity structure for your family business. This article describes how these entity structures can help you transition your business to the next generation.
The transition of ownership from second to third generation is especially precarious. This article explains how the transition affects the family, the owners and the business.
by Leslie Dashew
24 hours after Leslie returned from a trip to Nepal, she gave the following talk for a family business forum in Grand Rapids, Michigan. One of the benefits of traveling-particularly to a country which is so remote and different- is to gain perspective. And one of the lessons of this trip was an affirmation that we have more in common with people around the globe than we are different.
If you are considering selling your family business in order to provide for your retirement income, work with financial and estate tax advisors in creating a strategy that meets your needs. Here are some important factors to take into consideration.
As you grow your family business, you envision it lasting for generations. However, that takes more than just a vision. It takes planning.