Family businesses make up half of the gross domestic product of the United States—from mom-and-pop stores to Fortune 500 companies, where 35% of the list are private or public companies run by families. The significance of the family business to the United States economy continues to increase; Family businesses account for 60% of the jobs in America and roughly 80% of the new jobs created.
Developing a Vision
If you are a business owner and need to plan an exit strategy—whether it is taking the company public, selling, or retiring and handing over the reins of your business to family members—you need to create a collective vision, goals, and objectives for your business, just like you need to establish personal retirement goals and cash flow needs for retirement.
One survey notes that only about half of business owners believe that members of the next generation can operate the business on their own. This uncertainty about whether sons and daughters or nieces and nephews have the ability to run a company is a major issue for family businesses. With that in mind, our business succession attorneys at Murphy Cordier Casale Axel PLC will help you identify goals of the next generation of management.
Key Issues
With focus and professional planning, family businesses can overcome these issues. Some of the important details to consider include the following:
- Transition to the next generation;
- Alignment of family interests between current owners and others;
- Creating buyout agreements;
- Avoiding interfamily disputes; and
- Estate planning and taxation issues.
Our attorneys will help to structure a succession scenario where both the goals of the family and the business work in concert towards the same results.