Within your small or family business, planning is essential for the security and continued success of the business itself as well as for the current and future generations of your family.
Your goals, your family’s goals, and your company’s goals must all be considered in a successful business succession plan. The Farr Law Firm can assist you in making sure all of the plans work together. Important issues need to be addressed in each area of planning.
Family Dynamic Issues
Is conflict within the family affecting the business? Are some family members active in the family business and some not? Does this create conflict? Can family members pursue their own goals within the current structure of the family business? Perhaps a change of structure is in order.
As the owner, what is your role now? What do you want it to be in the future? Will you remain involved, or will you totally step aside? What if you become disabled? How will you and your children remain financially secure? What are your sources of income? What are your options? Perhaps additional life insurance, disability insurance, or other sources of financial support are called for.
What is your company’s value? Have you had it appraised by a Certified Business Appraiser? Where do you want the company to be in five or ten years? Do you want to expand, cut back, or sell?
Who, if anyone, will take over your business? Should it be a family member? How will the wealth of the company be distributed? How will estate taxes affect the company? How will leadership be transferred? How will significant wealth affect your children? Should creation of a family foundation be considered?