Family businesses account for much of this country’s domestic product and are essential to the American Dream. Whether it is a century-old international automobile manufacturer or a group of local dry-cleaners, family involvement in the business is a common goal. Like anything worth keeping, it takes work to preserve.
Posts Tagged: Business Succession
What not to do when figuring out how to make sure your business will outlive you.
It has been said that seventy percent (70%) of Americans have done no estate planning. I would suspect this number may be even higher among business owners when it comes to creating an exit or succession plan for their business.
Families now have the chance to pass a substantial stake in their businesses to the next generation—even before handing over the reins. But transferring ownership can raise complicated succession and estate-planning issues that families need to address before giving away so much as a share of stock.
How small-business owners handle the process of retiring or exiting from their businesses will have a tremendous impact on their ultimate level of wealth. Making appropriate decisions in this regard can seem less overwhelming if you see it through the lens of Wall Street: sell, hold, or buy.