Should I Leave My Business to a Family Member?

Family businesses can evolve from small enterprises to massive, transnational corporations in less than a generation. If you have built a successful business from the ground up, you may want it to succeed even after your passing. Leaving behind a successful business is one of the best ways to leave a lasting impact on the world, but who will run your organization when you’re gone? This is a common and difficult question for many business owners in Florida, and a Palm Beach County business succession lawyer may be able to help.

The Dangers of Leaving the Business to Your Family 

For a father who has spent his life building a successful business, handing over the reins to a son might seem like the only viable option. However, it is important to consider the long-term effects of this decision. If the son has only limited experience running a business, this decision could end the entire operation within a few short years after your passing. In the end, this could rob the entire family of reliable income for the foreseeable future.

Note that many of the most successful entrepreneurs in the United States are well aware of how quickly family wealth can dissipate over the generations. Statistically speaking, it is very unlikely for family fortunes to survive beyond three generations. The families that manage to preserve this wealth generally execute effective estate plans that keep control away from family members.

You Can Still Provide for Your Family Without Handing Over Control 

A family business can continue to survive and provide income to your loved ones, even if your family members are not at the helm. A more meritocratic approach might involve selecting the most suitable person to inherit leadership – whether they are a family member or not. This individual stands the greatest chance of helping the business succeed.

Even if your family members are not leading the company, they can still benefit from the company’s success. Although this might seem like a difficult decision, it might provide more long-term economic security for your loved ones.

The Best Business Succession Plans Are Implemented Early 

If you’re serious about business succession planning, you should get started as soon as possible. By acting early, it may be easier to prepare your family members for success in leadership positions. Over the space of a decade or so, you can gradually step away from the company while grooming your family members to inherit the reins. This period may also allow you to assess whether your family member is truly the most suitable candidate.

How Can a Business Succession Lawyer in Palm Beach County Help? 

Only you can decide who should inherit leadership of your business. That said, a business succession lawyer in Stuart may be able to help streamline changing leadership in your company. Consider a consultation with Kitroser Lewis & Mighdoll to discuss your specific goals and priorities when it comes to business succession. We can help you preserve the integrity of the company you worked so hard to build.

Source: 

business.com/articles/prevent-workplace-nepotism/

hbr.org/2008/07/the-dangers-of-nepotism