After choosing the type of business you want to operate, the next most important decision to make in a family business is determining what will happen when you no longer can or want to operate your business. This is most commonly referred to as the succession plan for your business. What is going to happen to your business if you are no longer able to or no longer desire to operate your business. It important to know that only 34% of family businesses are successful in transferring assets from the first to the second generation. Only 14% are successful in transferring a business from the second to the third generation.
Hoffman & Hoffman works closely with the business owner to ensure that their estate plan is properly handled and that a proper business succession plan is in place, prior to actually needing one. Many lawyers focus solely on the tax issues and the other legal aspects of passing on a family business. We at Hoffman & Hoffman take a different approach. We not only look at the tax and legal issues, but we also pay close attention to the underlying personal and emotional issues that are involved in transferring a business, as well as the individual goals of our client. There are many decisions that you can make it the outset of your business that might help your successor to be successful.
Depending on the type of business, the manner in which the business was formed, and the individual goals of the business owner, we at Hoffman & Hoffman will assist you in formulating the best possible plan for you and your family. There are many tools and mechanisms to accomplish most every goal, and failing to take the time now will make your succession plan that much more difficult to implement when it is needed.
Business succession planning is a very complex area. It involves accounting, insurance for liquidity, professional investment advice and the help of a qualified attorney. Hoffman & Hoffman is unique in that we handle both business law and estate planning law, which are both necessary for your succession plan.