Laurence Hames
Succession Planning for Family-owned Businesses
Succession Planning for Family-owned Businesses

It is a common practice for the owners of a closely held business to want to preserve that business for future generations. Doing so in the context of the “family dynamic” may present a variety of challenges. Frequently…and not surprisingly…all the options are painted on a canvass of competing interests.

The implementation of an exit strategy in a family context is not a “one size fits all” proposition. Some family members may be likely candidates for successor ownership; others clearly may not. Balancing transfer of management responsibility becomes an art form. A third-party disposition of a family-owned business may be preferable.
Tax structure, funding alternatives, continuing involvement and control — as well
as a host of other considerations — require careful deliberation.

Changes in tax laws, market conditions and family business situations represent considerable wealth management challenges, and these changes may substantially impact the individuals, families and the businesses involved. Also, while notable
talent and experience are important considerations in your choice for legal counsel throughout your business life, there are special nuances of family-owned entities
that call for a particular breadth and depth of both practical and legal experience.

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