Business Continuity
How to assure the long-term stability of your company’s ownership and management.
Family businesses have a tendency not to remain in the family over time. Two-thirds of all businesses fail to succeed the founder’s generation. Only 14% make it to the third generation.
Not all family businesses and not all families have the profile for a functional multigenerational transfer. But most do have the right characteristics, only they fail to plan effectively for the transition.
Are you willing to risk the business just
to find the right time to initiate your
succession plan? Where are the gaps
in your planning today?
Have you analyzed all the possible
outcomes of the
retirement, disability "disability", or death of the
founder— including tax, financial, management, and
family issues?
Do you have agreements and funding in place to
assure the right scenario occurs?
Have you systematically reviewed your valuation and
funding assumptions to support the agreements?
Do you have a clear understanding of your spouse’s
and children's desires for involvement in the
business at this stage of their lives?
Are you certain the revenue base of the company will
support the needs of broader family ownership?
Are you certain your plan will not create conflicts if
some children remain active in the business while
others do not?
If you feel the right thing is to sell the business, do
you know how your heirs will find a buyer?
Would more information help your future decisions?
Consult Leisman Library
Email Bill Leisman