Family Businesses Series of Six Articles
In addition to investment banking, I write a Business Ownership column for ThomasNet.com. I published a series of six articles on Family Businesses in late 2019 (which were tremendously popular, ranking in the top of all articles read that week). This series is useful and important reading for private company owners considering family succession.
Perhaps you will find them pertinent to your own situation.
Many U.S. private company owners dream that someday their offspring will want to take over the business, then successfully grow it to new levels, but that dream isn’t usually a reality.
Only somewhere between an estimated 10% to 30% of U.S. businesses transfer to family members when the founder exits, here are some reasons why.
Private company owners who hope that their offspring will want to take over the business should prepare, but that may not be the best option.
There are many details to consider before gifting or selling your business to your children for future management.
In a sense, think of your business as a high-performing company that just happens to employ some family members.
Although entrusting the majority of your retirement wealth to your children who will buy your company on a multi-year note collateralized by the business may be worth Nice Guy credit in the afterlife, it’s likely not the best idea in the short-term.
Alternately, this page on the Thomas site contains all of the above links.