Business & Continuity Planning

Family business is the backbone of our economy.  However, most family-owned businesses are challenged to survive past the current generation of ownership.

The fact of the matter is that many family-owned businesses do not successfully transition to the next generation. The sorry track record of family business succession is typically due to a combination of factors, but the chief cause is the lack of leadership and vision by the owner generation. 

Too many business owners don’t address continuity risk from the death or disability of a key person, do not adequately protect the business from litigation, do not properly develop the next generation to assume leadership or fail to develop a feasible buy-sell plan to assuage family tensions.

The path to a better business succession outcome is crafting a viable continuity and succession plans when times are good, relationships are healthy, and well in advance of a future target transition date.

A well-designed business strategic plan takes into account all aspects of the family business—strengths, weaknesses, opportunities and threats. It addresses continuity risk from the loss of key people, remedies ownership control issues —retention and transfer — and deals with estate and tax ramifications associated with business ownership transfer.

If there is no next generation to whom to transfer the business, then the business planning opportunity becomes positioning the family enterprise for profitable sale by the owner on their terms, tax-efficiently.

Don't let your family business become another fatal statistic. Invest the time and money to design viable business success and continuity plans sooner rather than later to protect it, at least for one more generation.