Lasting family businesses have long erm strategies

When transferring a business, there are three important strategies to consider: outside accountability, long-term focus and taxes. First, a board of advisors or a formal outside board of directors will provide fresh ideas for the family and accountability. Second, a long-term strategic plan provides a roadmap for the future of the company’s growth, fiscal responsibility and profitability. These strategies maximize the value of the company either in the second generation or upon a sale. Third, ownership among family members must be addressed through proper planning, which typically involves transferring the value of the company into the hands of the second-generation either directly, through trusts or the use of other vehicles. This can be accomplished through gifts prior to a sale or where the family intends to retain the business for future generations.

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