Business Succession

Some 90 percent of all American businesses are family business. At any given time, about 40 percent are in the process of transferring their ownership. Unfortunately, two-thirds (⅔) of all initial transfers fail. Of the one-third (⅓) that survive the initial transfer, only one-half (½) will survive the second. The reasons for this dismal success rate are as varied as the businesses and the business owners themselves. Nevertheless, many of the failed transfers can be traced to three (3) causes: people, taxes and cash. Fortunately, proper planning in advance can avoid these disasters for the businesses and families who own them.