By Fredrick P. Niemann, Esq. a New Jersey Business Succession Attorney
Is family succession the right option?
It may be your dream to keep your business in the family but you need to consider the implications of doing so. It’s important to balance your emotions with hard reality. You must be objective!
Long before you intend to retire or “get out”, you need to ask a number of key questions:
Does your intended successor really want to take over – or do they feel obliged to do so? That question is directed mostly to your children in the business.
Does your intended successor possess the right skills and attributes for your unique business?
Is someone else in the business – eg a non-family manager – better placed to take your business forward? Again, be honest.
Will designating a future successor today create conflicts in your business – perhaps between individual family members and other employees?
Will family succession provide you with sufficient after retirement income for your future?
Will family succession be tax-efficient? An analysis of the income tax issues involved should not be minimized.
After thinking through the questions I’ve posed, maybe instead of family succession you should be considering other exit options, such as:
• a outright sale of the business to an unrelated third party
• a management buy-out
It can help to involve an impartial third party in these important decisions. For example, a business adviser can provide objective advice.
Contact me personally today to discuss your New Jersey business succession concern. I am easy to talk to, very approachable and can offer you practical, legal ways to handle your business decision matter. You can reach me toll free at (855) 376-5291 or e-mail me at fniemann@hnlawfirm.com/.