If you own a family business, retirement is not simply a matter of deciding not to go into the office anymore. You have some critical questions to answer such as, "What happens to the business when you are no longer running it?" and "Will you have enough money to retire?"
The family dynamic complicates the whole transition because of the relationships and emotions involved. Most people are not comfortable discussing topics such as aging, death, and financial affairs.
Developing and implementing a well-designed succession plan is essential to the survival of a family business from one generation to the next.
Cole, Newton & Duran can help you with these key issues:
- Keeping it in the family. Are you going to transition the business to your family or sell it to a third party? We help you weigh the advantages and disadvantages of these options.
- Who is going to run the business when you are gone? Management and ownership are not one and the same. You may decide to transfer management of your business to just one of your children, but transfer equal shares of business ownership to all your children, whether they are involved in the business or not.
- Minimizing taxes. The tax burden when transitioning a family business can be significant. The challenge is that a family business is not generally a liquid asset, but taxes are typically due when ownership is transferred.
- Making it fair. Transferring family ownership often adds a tremendous amount of stress to individual family members. We talk with each family member to ensure that they feel they are getting an equitable and fair share of the pie.