Every family business should have succession planning as a key priority. Sooner or later every individual will want to retire but there are numerous other reasons why you may wish to step out of a business. Ensuring that you have enough money to retire on and that you have key procedures in place in the event that someone wishes to leave the business is important not just for the future of the company but also for your loved ones.
Think carefully about whether or not the business will be carried on by relatives. If this is the case, then it is more important to have a clear business succession plan to manage the issues including a smooth transition between the people who are working there now and future owners of the business. In any family business, succession planning can become immediately more complex as a result of the emotions and the relationships involved.
According to research, more than 70% of businesses owned within the family will not survive the transition from the founder to the second generation. In the majority of cases, the challenges that ultimately close down these businesses are family discord and taxes. However, setting up a meeting with an experienced business succession planning attorney now can help to address these issues and avoid them entirely. You may wish to consult with eth tax component as well as the potential for reorganizing the corporation and the strategies by which future business owners and managers will be trained in their new roles.