The most recent PwC U.S. Family Business Survey concludes that lack of family business succession planning is a substantial problem for many U.S. family businesses. The study points out that while nearly 70% of family business owners expected ownership to continue to the next generation, only 23% had a robust, documented business succession plan. This is no small issue. Without a formal succession plan in place, when senior owners relinquish control, a host of issues may arise. Consider:
- What if next-generation family members are unprepared, unable, or reluctant to lead?
- What if family members or other stakeholders do not support the choice of successor?
- What if the business does not have enough liquidity to support transition of ownership within the family?
Many of these problems can be mitigated or avoided altogether with intentional family business succession planning. Make no mistake: it takes thorough planning — not just tradition and good intentions — to successfully pass along to your children or other heirs the family business you have worked so hard to create.
Due to the deeply personal nature of family business succession, the services of a professional advisor can be instrumental in succession planning. From strategic positioning, to foresight and vision, to drawing up necessary documents, a business advisor provides an experienced and objective expertise.
The team of professional advisors at Viking Mergers & Acquisitions is prepared to help with your family business succession planning needs.
We help facilitate conversations about:
- goal alignment
- business leadership and vision
- and the strong emotions inherent in family business situations.
We will help you navigate issues like:
- fair and equitable distribution among heirs.
- management and ownership concerns, including goal alignment and multi-generational planning.
- identifying sales options if the family prefers to play a limited role or does not want the business.
- business and tax structuring, including tax mitigation and estate planning considerations.
- financing, to ensure you get the money you need out of the business to provide financial security during your retirement.
Take the steps necessary to ensure that your family business and the legacy you have built are prepared to survive the transition of family business succession. Contact us today to learn how we can help your family develop a plan for the future together.
