Heir Conditioning:Should Your Children Get The Family Business, or What It’s Worth?

Heir Conditioning:Should Your Children Get
The Family Business, or What It’s Worth?

by Michael P. Kirby

For an owner of a closely held business, few questions cause as much soul-searching as the issue of whether to leave your children the company…or the company’s value.

This may sound like a rational business decision, but it’s not.It’s a choice that can pit your head against your heart, your love for your business against your love for your kids, and your hopes and dreams against cold hard reality.

Not long ago, a business owner in another state asked Banc One Capital to advise him on the ramifications of valuing his company for estate planning purposes.Mr. Lincoln (not his real name) was proud that his two children were both actively involved in the manufacturing business he had founded.However, when his son, the president, had a falling-out with his daughter, the executive VP, it was all he could do to keep their dispute from affecting company operations. More…

Personal Financial Planning for Family Business Owners: Providing for the Future Without Rocki

Personal Financial Planning
for Family Business Owners:
Providing for the Future Without Rocki

How do you plan for retirement when most of your wealth is tied up in the business? That’s the challenge facing many owners of small and mid-size companies.

For owners of family businesses, though, that is just the beginning of the challenge. Because they must not only deal with approaches for generating retirement income, but with delicate family planning issues as well.

If the next generation of family members won’t be involved in the business, personal financial planning could take one course. If some members of the next generation want to be in the business and some don’t, personal financial planning could take another course. And if all members of the next generation expect to be in the business, it could take still another direction. More…