Family businesses make up half of the gross domestic product of the United States—from mom-and-pop stores to Fortune 500 companies, where 35% of the list are private or public companies run by families. The significance of the family business to the United States economy continues to increase; amily businesses account for 60% of the jobs in America and roughly 80% of the new jobs created.

Developing a Vision

If you are a business owner and need to plan an exit strategy—whether it is taking the company public, selling, or retiring and handing over the reins of your business to family members—you need to create a collective vision, goals, and objectives for your business, just like you need to establish personal retirement goals and cash flow needs for retirement.

One survey notes that only about half of business owners believe that members of the next generation can operate the business on their own. This uncertainty about whether sons and daughters or nieces and nephews have the ability to run a company is a major issue for family businesses. With that in mind, our business succession attorneys at MKC Law will help you identify goals of the next generation of management.

Key Issues

With focus and professional planning, family businesses can overcome these issues. Some of the important details to consider include the following:

  • Transition to the next generation;
  • Alignment of family interests between current owners and others;
  • Creating buyout agreements;
  • Avoiding interfamily disputes; and
  • Estate planning and taxation issues.

Our attorneys will help to structure a succession scenario where both the goals of the family and the business work in concert towards the same results.

Contact MKC Law

If you’re a business owner ready to retire, you cannot dismiss or postpone the issue of succession planning. Our business succession attorneys will create a comprehensive succession plan to help you reach your desired objectives. Call us today at 602-274-9000 to discuss the details of your situation.