- BUSINESS SUCCESSION
- Many studies have shown that
less than one in three family businesses succeed into the third
generation. Occasionally, due to various circumstances, the sale
of the business by the founder makes most sense, even for the
sons and daughters. More often than not, however, the first and
second generations work together to keep the family business
intact, providing employment and other opportunities for grandchildren
and future generations, as well as giving some legacy to the
family name for years to come.
- While being successful in keeping
the family business alive involves many legal and tax issues,
it also requires family members to work together in a spirit
of fairness and equity. The founder must have some degree of
security for retirement years. However, talent, business skills
and specialized education of the younger generations must also
be rewarded. A cooperative environment is hard to achieve, but
it can be accomplished through appropriate agreements and documentation.
Wills, trusts, pre-nuptial agreements, shareholder buy-sell agreements,
and employment agreements are but a few of the documents that
can solidify the family business for years to come.
McLaughlin has been intimately
involved in real-life situations with family business and can
bring his counseling abilities and transactional experience to
accomplish the objectives of his clients.
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