Peace in the SandboxPeace in the Sandbox
According to a number of U.S. Small Business Administration reports, roughly 90 percent of U.S. businesses are family firms. Yet, only 30 percent of these companies successfully transition from the first to the second generation, and a mere 15 percent survive into the third.1 Succession planning for a closely held business is difficult for two primary reasons: Equity in a family business is unique
Charles A. Redd
According to a number of U.S. Small Business Administration reports, roughly 90 percent of U.S. businesses are family firms. Yet, only 30 percent of these companies successfully transition from the first to the second generation, and a mere 15 percent survive into the third.1
Succession planning for a closely held business is difficult for two primary reasons: Equity in a family business is unique in that it often has substantial value but limited marketability; and family relationships often make dealing with that asset emotionally charged.
Non-tax matters often equal or exceed tax issues in determining a successful succession plan. So let's consider some key non-tax matters to see how an estate planner might handle them ef...
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