Succession of Ownership
Do you have a succession plan for your family business?
Oftentimes family business owners define a succession plan as a specific event or date when they hand the reins of the business to the next generation or other family member owner.
Actually, succession planning should be an ongoing process that includes careful planning which may even evolve and change over time based on the development of various factors such as health issues, personal financial vulnerabilities etc..
A successful succession plan depends on developing a plan that is consistent with a family’s values, builds strong foundation for future business success, prepares successors for increased leadership and ownership responsibilities and creates a smooth transition to the next generation.
With that being said, in some situations in spite of the families best effort, a consensus concerning a succession plan from one generation to another cannot be reached between the family members. In those situations, a sale to a third party may be the best strategy to protect family relationships and preserve the family’s wealth accumulated in the business.
Contact us.
dan@penninggroup.com
(248) 752-6480
P.O. Box 490
Suttons Bay, MI 49682