Family business transition can take unexpected turns

The transition of business ownership from one generation to the next is a plan that typically crosses the mind of most owners of closely-held family businesses. While this may seem like a reasonably safe, natural option, especially if the transition is to the business owner’s child/children, the choice can be smooth or it can be disastrous, depending on many factors.

Selling to a family member can be richly rewarding and highly beneficial, including the impact on your family goals, a continuance of income and even tax planning. Yet it may also be extremely difficult to separate emotions and family dynamics, which can ultimately lead to a long and daunting transaction process.