Owners of family businesses often look forward to the day they will be able to retire and pass on the business to their child or children. When successfully accomplished, it is also a proud time where the parent/business owner can watch their children take control and manage the business they’ve worked hard at for many years. Unfortunately, many family businesses are never successfully transferred to children because of unforeseen or unplanned challenges. Planning for the future transfer of your business means you need to start years in advance, if possible.
You are probably saying to yourself, “I know I am going to retire and I know my son/daughter wants to take over, so what can possibly prohibit that from happening?” Then the most significant challenges transferring the business are financing and taxation. Most family business transfers fail due to these obstacles.
Other challenges to successful business transfers include a lack of teamwork among family members (usually when one child is receiving more responsibility or ownership than another), second thoughts by owners about letting go, and a lack of future direction for the business to name a few. Meeting with a knowledgeable business succession attorney to plan the future transfer of your business can make all of the difference and help give you peace of mind that you will not be met with unforeseen challenges when it is time to transfer your business to your children. Please call Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at fniemann@hnlawfirm.com. Please ask us about our video conferencing or telephone consultations if you are unable to come to our office. He wants to discuss this important business matter with you.
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Business Law Attorney