Special Financial Considerations for Husband & Wife Family BusinessesSeptember 11, 2013
The Wall Street Journal reported that one-third of all family businesses are operated by husband and wife teams, representing a substantial number of all businesses. The dynamic of the team, however, can vary greatly. In some cases, one spouse will start the business, or may already be involved in an existing family business prior to …
Infographic: Top Family Business Statistics You Need to KnowAugust 16, 2013
Information graphics, aka “infographics,” are used to visually present statistical information in a compelling and easy-to-understand manner. For family businesses, infographics are useful primarily for the overall impact they may have – especially if they encourage the pursuit of further knowledge or action. There are family business-specific sources that bring these statistics to life, and …
Why All Family Businesses Should Start Succession Planning TodayAugust 9, 2013
Succession planning is likely the most common topic presented by family business advisors and other experts, but for good reason. It is something every family business should do, yet less than 70% of them make it to the second generation, in part due to lack of a plan. Succession planning may seem overwhelming and too …
Preventing Fraud in the Family BusinessAugust 6, 2013
We’ve all read about business fraud, perhaps even in our local region. A trusted employee is discovered to have diverted company funds to themselves for years – the results being a loss of tens or hundreds of thousands of dollars, the former employee facing at least public humiliation for the crime, if not jail time, …
Five Common Causes of Family Business Feuding and How to Avoid ThemJune 28, 2013
Family Feud the game is fun to watch. Family feud in the family business is like watching a train wreck. It’s hard to put a good spin on the word “feud.” It implies more than just a disagreement, but rather a longstanding and deeply-rooted standoff. It would be unrealistic to expect all family members to …
Financial Considerations for Family Businesses with Aging OwnershipJune 6, 2013
An issue that family businesses inevitably face is having an owner who is heading to retirement (or planning on working until “the end.”) At this time, the “what ifs” begin to surface. What if the owner passes unexpectedly? What if there is no successor already chosen? What if no one else in the family knows …
Understanding Estate Tax: What It is and What Your Family Business Needs to KnowMay 22, 2013
Estate taxes are levied on the fair market value of an estate passed to heirs upon the death of its owner. As they pertain to a business, ownership (title) of a family business is an asset of the estate and is included in the overall estate on which tax may be due. If there is …
Five Reasons You May Need a Family Business AdvisorMay 1, 2013
According to the Family Business Institute, 88% of current family business owners believe the same family or families will control their business in five years; however, succession statistics undermine this belief. The statistics are concerning: It is estimated that only 30% of family businesses will survive into the second generation. What’s to blame for …
How to Effectively Engage a Family Business AdvisorApril 25, 2013
Engaging an advisor for a family business requires some unique considerations as family ownership often presents complexities and hurdles not generally found in other business types. Many of the issues specific to family businesses include succession planning, governance, and corporate actions. In addition, personal and business finances, as well as social relationships, are often intertwined. …
Is Your Family Fairly Compensated? Key Considerations of Family Business CompensationApril 17, 2013
Determining fair compensation for family members in a family-owned business can be a bit more complicated than one might imagine. The issue of fair compensation not only involves multiple aspects of the business, but also the complexity of the family. From a business perspective, finding the appropriate level of compensation is relatively easy. There may be …