For decades now, people have made the claim that most family businesses will not last through the third generation. This shows how challenging it can be to do business succession planning and pass a company down through the family line. By the time the grandchildren...
Many business owners assume that their children will want to take over the business. This may have been their dream from the very beginning. They’ve been building the company up so that they can give this valuable asset to the next generation and set their family up...
When it comes to business succession planning, business owners sometimes assume that they need to equally divide up ownership. For instance, you may be a business owner with four adult children. The business is one of the most expensive assets that you own, so you’re...
When it comes to ensuring the survival of a family business for future generations and preserving (or creating) generational wealth, the use of a family limited partnership (FLP) can offer some unique advantages. A family limited partnership is a business entity...
Family businesses are incredibly common. According to one report, almost 77% of small businesses can fit into this category. Even some major corporations have a single family at the top of the executive board, Wal-Mart, for instance, is owned by the Waltons. However,...
Business succession can be a concerning issue, especially if you believe your adult child is not suited for your company. Surprisingly, a significant number of business owners are choosing not to include their children in business succession plans. Common reasons to...
Chances are you started preparing your children to take over the business from when they were young. Perhaps, you had them visit often to familiarize themselves with the business and have introduced them to managers and employees. However, when they are old enough,...
When it comes to business succession planning, it’s important to get started well in advance. This isn’t something you want to put off until you’re about to retire. Whether you’re leaving the company to an employee, an adult descendant or someone else entirely, you...
If you are going to be passing a family business on to the next generation, it’s important to do succession planning. Don’t just leave this up to chance. Take the time to carefully plan how you want to transfer ownership of your business, increasing the odds that...
A generation or two ago, when a business owner passed away, their heirs typically took over the company (for better or worse). And while it’s true that sometimes those scenarios still take place, many of today’s heirs have little interest in assuming the mantle of the...