|
|
Business Succession Common Exit Strategies Passing the Business to Family: If you decide to pass the business to family, you will need to address: Strategic issues such as leadership and management choices, restructuring of the business, or sale of all or a portion of the business. Legal & tax issues such as shareholder agreements, prenuptial agreements, marriage or divorce of a child or shareholder, or death of spouses, key employees or a potential successor. Family policy issues such as share ownership of family vs. non-family executives, shares for new children or grandchildren, impact of illness or disability, the owner's retirement plans, and employment conditions of family members in the business. Perhaps the most important question is whether a family succession is even feasible. An owner must be objective in assessing the talents and interests of potential family successors. Questions to ask include:
To sort out these issues, you may want to try forming a family council. These are regular meetings designed to create trust and understanding around estate planning, retirement and wealth management issues. The family council is also an excellent vehicle for:
With a forum for discussion and a basis for assessment, you can deal more effectively with legal, tax and operational issues. |