There is a real threat to many businesses in the United States and our area is certainly not immune.
According to Forbes, between 80 – 90 percent of U.S. businesses are family owned or family controlled. Statistics tell us less than one third of those will survive into the second generation and roughly only 10 percent will make it to the third and beyond.
Business succession planning is very important and is a process whereby owners research and decide upon a plan to move forward in case of the event of death, illness, or simply a transition. It generally uses estate planning strategies and there is no “one size fits all” plan. Careful consideration must be given to determine the best options. But one thing is certain: without a plan in place, there is a high degree of the possibility of failure.
It is so important to develop a plan and communicate to your team you have one. There are many succession planning vehicles and succession planning concerns. It is important to seek the advice of an expert on such matters and do it sooner rather than later.
Many believe business succession planning is at least as important, and maybe more important, than individual estate planning. Employees, customers, and family members are relying on a smooth transition. Failure to do so affects many lives and the local community. Don’t let them down.
