Family Business Transition Planning

Family relationships and values can make succession of family businesses even more challenging than for other enterprises. Here are some suggestions for family businesses that can make succession planning and execution less trying: 1. Obtain a valuation of the business regardless of whether it will...

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Bibliographic Details
Published in:	Journal of Accountancy Vol. 212; no. 5; p. 22
Main Authors:	Fitts, James A, Rowe, Marshall G
Format:	Trade Publication Article
Language:	English
Published:	New York American Institute of Certified Public Accountants 01-11-2011
Subjects:	Family owned businesses Guidelines Succession planning United States > US
Online Access:	Get full text
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Summary:	Family relationships and values can make succession of family businesses even more challenging than for other enterprises. Here are some suggestions for family businesses that can make succession planning and execution less trying: 1. Obtain a valuation of the business regardless of whether it will be transferred between generations or sold. 2. Maximize the company's value. 3. Identify prospects. 4. Negotiate the structure of the sale. 5. Set goals that reflect the family's core values and legacy. 6. Prepare the business for change. 7. Designate a leader to oversee business management during this phase. 8. Plan whether the responsibilities of the current CEO will continue or how they will shift. 9. Communicate the plan to all constituencies.
ISSN:	0021-8448 1945-0729