Many individuals in the baby boomer generation created their own wealth through entrepreneurial effort. Today, a large number of these boomers are looking to hand their businesses off to the next generation. A recent article discusses estate planning tips for boomers looking to pass on the business.
Passing down a business should not be taken lightly. A mere one-third of family businesses are successfully passed down to a second generation. Just above one tenth make it to a third. The difficulties of succession planning often make it the most difficult part of the estate planning process. Clearly, without putting together an estate plan that includes the succession of a family business, businesses have a difficult time succeeding.
If you are planning on transferring your business to a family member, it is important to consider who your successor will be before discussing it with your other family members. Parents should be strong about their decisions so that those who disagree cannot easily talk them out of it. Additionally, the parents should create a succession plan and implement it while they are still living. This allows them to train the next generation of business owners, as well as facilitate a successful transfer.
For assistance in succession planning for your business, contact us at (626) 696-3145.
