Planning for the Family Business Transition
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Business owners face the challenge that their role as leader will one day end. Confronting and planning for the next generation can be difficult, but the cost of not facing this question — both financial and personal — may be substantial. Investing the time now to ensure a successful business transition can be impactful for the owner and show the company that there is a bright future for the next generation of the business.
Understand the Barriers
Some of the common barriers contributing to a lack of a succession plan include:
- Feeling uncertain about the future (and value of the business)
- Lacking clarity about what the succession plan should look like
- Lacking time to prepare
- Fearing the unknown
- Avoiding the subject due to its complexity
Recognizing and acknowledging these potential barriers can help begin the crucial process of business succession planning.
Make Your Transition a Success
Ask yourself, “What do I want the business to look like?” The best option for your business — whether it’s a sale, a gift, or a combination of the two — will depend on a variety of considerations and your individual circumstances.
A qualified attorney can help you sort through your options and design a business succession plan that will be in sync with what you want. Talk to your Federated marketing representative for a referral to a member of Federated’s network of independent, experienced, and vetted attorneys.
This article is for general information and risk prevention only and should not be considered another other offer of insurance or legal, financial, tax, or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all losses. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. This information is current as of its publication date and is subject to change. Some of the services referenced herein are provided by third parties wholly independent of Federated. Federated provides access to these services with the understanding that neither Federated nor its employees provide legal or other expert advice. All products and services not available in all states. Qualified counsel should be sought with questions specific to your circumstances. All rights reserved.
