Business Strategies

Until recently - creating a family legacy traditionally meant starting a business, like a family farm or a retail store, that could be passed down from generation to generation. Over the past couple of decades there have been a great many family legacy enterprises created. A recent study concluded that nearly three fourths of privately held manufacturing firms in the U.S. were formed between 1960 and 1980. The average age of those owners now put them in the retirement category, but of those owners only about 14% have a succession plan in place for their company if they should die or become disabled.

While most would agree that having a succession plan was important, very few have taken the steps needed to implement such a plan. Most are dealing with their own day to day struggles of keeping the business open. They feel they have to spend the time focusing on short-term needs like sales, marketing, product development, cost containment and crisis management without giving much regard for the possible devastating impact that their demise or long-term disability might cause their employees, their families and their community.

Whether or not your children choose to continue in the family business might have a great deal to do with whether you make it possible for them to do so. Without at least giving succession planning some thought and discussion, the possibilities for family succession can become limited and maybe even impossible.

Business succession doesn't always involve passing the business to your family. It might involve passing it cleanly to your partner or providing for your employees to buy you out. Whatever the need, it is a good idea to have a succession plan in place. We can help you structure a plan that can accomplish your goals. From developing Buy-Sell agreements to partnership trusts - let us help you explore your options.