“Luck is what happens when
preparation meets opportunity”
– Richard Branson
“Luck is what happens when
What’s next for your
family-owned business?
A family-owned business can oftentimes be a complex asset to manage. The interdependencies of wealth, business operations and family ties bring with it a variety of complex issues to address. The family business is a living, breathing organism which requires planning, ongoing commitment and consistent communication.
The succession plan for a family-owned business requires diligent planning, years of preparation and the input of all stakeholders. These issues all revolve around the very basic question to address, which is:
“To keep or sell?”
The legacy of your business and wealth can easily be diluted from a lack of planning to address liquidity requirements and tax obligations as they arise upon a significant transition event. We can address the planning issues which often arise with your family business.
Structure
- A review and assessment of your current corporate legal structure
- Has there been an estate freeze? If so, is there funding for the tax liability?
Exit Planning
- Assessment of potential tax liability upon sale? Who are the potential buyers? Are pre-sale tax planning avenues explored?
Contingency Planning
- How will the business operate without the principal? How does the family pay the tax liability upon death?
- Do your will(s) address your business succession intentions?
- Is a shareholder agreement signed? Is there funding for the buy-sell provision?
Valuation
- What is the business worth and how are beneficiaries to be treated upon death? Equal and fair are not always the same
