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Consider the role family businesses play in job creation: family companies are responsible for 60 percent of the jobs in America and nearly 80 percent of new jobs created.
If you decide to leave your business to a family member consider the legal obligations, as well as the impact on family relationships.
Consider involving a lawyer or business adviser in discussions with family members to avoid disputes relating to inheritance, ownership or management.
Uncertainty about whether junior members will have the aptitude and experience for running a company is the leading concern that family businesses have about keeping management in the hands of one or more family members.
Growth and Sustainability Family businesses often have intimate histories and complex cultures that are hard for outsiders to understand.
At some stage you will decide to leave your business; perhaps you have decided to sell, retire or do something else.
Regardless of the reason, having a succession (or exit) plan in place will help you to smoothly transition out of your business.
There are 5 common ways to transfer ownership of your business: This guide covers each of these succession plan types in greater detail.
Succession plans are commonly associated with retirement, although they also serve an important function earlier in the business lifespan: If anything unexpected happens to you or a co-owner, a succession plan can help reduce headaches, drama and monetary loss as your business grapples with a transition.
Many partnerships draft a mutual agreement that, in the event of one owner’s untimely death or disability, the remaining owner(s) will agree to purchase their business interest from their next of kin.
This type of agreement can help ease the burden of an unexpected transition— for the business and family members alike.