The processes and decisions you arrive at should be documented in writing and communicated to family members.3. This should identify ownership and management successors, define active roles for family members, and define any support that successors will require from family members.4. This should cover tax implications for the owner and business in the event of ownership transfer, death or divorce.
It should also review owner estate planning strategies for minimizing taxes and delays in stock transfer.
He graduated from Baylor University in 2009 with a Bachelor of Arts degree in political science.
It would be an understatement to say that family businesses are the backbone of the American economy.
Finally, for best results, bring in professional consultants to assist with the planning process.
Put Book Title Into Essay - Small Family Business Succession Planning
Success plans for family-owned business can get so contentious that most families choose to sell it than deal with disputes among the family, according to "Bloomberg Businessweek." In one extreme case, the Puma and Adidas brands caused the town of Herzogenaurach, Germany, to split between and Puma and Adidas wearers.
Whomever you choose, provide ample time so you can train them rather than just dumping the business on him.
Russell Huebsch has written freelance articles covering a range of topics from basketball to politics in print and online publications.
The SBA suggests choosing a successor with the best attributes to run the company, such as negotiating skills, experience and ability to read and write financial statements. Family business succession plans usually draw a line between ownership and management succession, according to "Businessweek." The stockholders may want to retain their ownership in the company without taking on operational responsibilities.
You also need to decide whether to divide up the shares equally or give the successor a controlling stake.