Alert - Succession/Exit Planning for Family-Owned and/or Other Closely Held Businesses
Why should small and family-owned businesses concern themselves with succession planning? The answer is relatively simple. Statistically, only about thirty percent (30%) of all family businesses survive into the second generation. According to recent data, two-thirds (2/3) of such businesses reported not being immediately prepared to fill a vacancy at the top of their organization in the event of an unanticipated occurrence (i.e., death, disability, sudden retirement, etc.). Besides being able to ensure the continuity of the business, are there other reasons for businesses to engage in and carry out the succession and/or exit planning process? Clearly, the answer is a resounding “yes”. Specifically, planning for the continuing existence of the business has many corollary benefits. For...