Twisting a Family Business Succession Plan

The Federal Reserve is not the only organization dealing with “twists” in their planning. We recently met with a family that had worked hard on a thoughtful succession plan for passing their family business to the next generation. What they did not plan on was a significant, unsolicited offer to buy the family business.

A decision had to be made. In addition to working with their trusted business and tax advisors to determine value and to examine the feasibility of the purchase offer, the current owners, who both worked in the business, also knew that they had to assess the impacts of the potential sale on their future and that of the following generations. Understanding their personal financial needs became as important as understanding the balance sheet of their business.

Family business owners often don’t know what to do when they are surprised with a compelling offer. As a result, they often make a hasty decision. Unfortunately, there is no guarantee that another offer will be available if a poor decision is made. Here at Laird Norton Wealth Management we help family business owners clearly see their whole financial picture and how successful it looks for sustaining their lifestyles into the future.

Are you prepared with a financial plan for life beyond your family’s business?