Family Business Transition

“Family business should be illegal”

Actual Gen2 Business Owner


That headline is an actual quote from a business owner (named withheld to protect the innocent) who sat on a family business panel. This owner shared his story about how he actually left his financially successful family business (as the son of the owner) due to the disfunction and stress of the situation. Typically as Gen 1 ages, the business can falter. This proved the case here as well. In this case the story ends well, not only was tragedy averted but this Gen 2 owner, now in complete control has also taken over other similarly faltering businesses in the industry and saved those. Key point though, it was done on his terms.

Keep in mind, ALL business is family business and ALL businesses change hands. Every business owner has family somewhere, be it spouses, siblings, kids, etc. Here we are concerned with businesses with multiple family members, or generations in the operation and/ or ownership. That simple change is adds a lot of fuel to the fire. These crucial decisions just got harder.

Repeated concerns of owners are:

  • Can my kids do this?
  • Do the want to do this?
  • How will I pay for my retirement?
  • Can I really get the true value for my hard work?
  • What are my realistic options?

You may be shocked to learn that a generational transfer is (typically) not the most effective or best means of transferring and protecting wealth. In reality it can be quite the opposite,  and quite frankly destroy the value, legacy, and wealth that was hard earned.

 

We help you with these key issues:

  • Pass it down? Are you going to pass the business on to your family or sell it to a third party? Is either the right answer? Sometimes there is no choice – inaction guarantees that.
  • Who is really ready to run the business? Is management placed on merit and ability or last name? This process is telling in and of itself.
  • Are taxes (or estate planing) driving your business decisions? Are they at the expense of good business and family decisions? Statistics show businesses given to the next Gen have lower success rates than otherwise transitioned.
  • Making it fair, or not. Often fair is not best for the business or the family and certainly fair does not always mean equal.

What we do for you:

Our goal is to educate you and your family to help you understand the key issues and progress by focusing on these core tools and issues…

  • Family Business Assessment
  • Exit Planning  Boot Camp for Families
  • Family Business Succession Facilitation
  • Tax, Trust, and Estate Planning Referrals

 

Begin your education with the two most important books about family business and generational wealth. Both are complimentary with your first consultation.

 

every-familys-business-softcover-book-1376232119     willing-wisdom-softcover-book-1380025021

 

 

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