Recapitalizing to Preserve the Owner's ControlRecapitalizing to Preserve the Owner's Control

David Thayne Leibell, partner in the Greenwich, Conn. and New York City offices of Wiggin and Dana LLP

Do not go gentle into that good night,
Old age should burn and rave at the close of the day;
Rage, rage against the dying of the light.
— Dylan Thomas

The senior generation's desire to maintain voting control over the family business is a common obstacle to effective family business estate and succession planning. Family business owners tend to fall into one of two categories when it comes to control. The “monarch” seeks to maintain control even at the expense of a successful succession plan. The less common “steward” seeks to nurture the business and willingly cedes control to the next generation. Unfortunately, there are far more monarc...