Consider these facts from the 2016 Family Business Survey by the National Bureau of Economic Research Family Business Alliance:
- 43% of family businesses do not have a succession plan in place.
- Only 12% of family firms actually make it to the third generation.
- Only 15% of family firms actually have a succession plan in place.
- By the fourth generation and beyond, only 3% of family businesses continue to exist.
All business are not created equal. The tightly-knit and often times complex nature of family businesses are similar yet uniquely different from non-family owned businesses. All too often, business owners do not plan ahead, making their businesses susceptible to instability. The smooth succession of a business requires a detailed plan that has been thoroughly strategized and well executed. Crises such as serious illness, disability or death can create great upheaval and jeopardize the best interests of a company and the people who own it. A carefully considered succession plan should be thought of as a kind of insurance policy, essential to the continuation of any business, regardless of its size and structure.
That said, the professionals at Morris Law Group have significant experience serving the unique needs of closely-held businesses. We work with business owners to formulate personalized plans for exiting from your business or the transfer of ownership and control of the business from one generation to the next while minimizing taxes. We prepare shareholder and partnership agreements and corporate reorganization plans, solve liquidity issues for tax obligations and structure stockholder buy-sell agreements. We also work with clients who have accumulated balances in their retirement plans and Individual Retirement Accounts (IRAs). Your transition to retirement should be smooth and free of stress, we can assist you to get there.