Life Disposition of the Family Business

Life Disposition
of the Family Business

Succeeding Generations
Fall, 1996

by Barbara Gill, CLU, ChFC, CFBS
& Dale J. Seymour, CLU, ChFC, CFBS

Seymour and Associates

Retiring from the family business?What does one do?Sell to other family members?Sell to an outsider?Perhaps retain the family business and gift portions annually to other family members.What about an installment sale or private annuity?Is an ESOP an alternative?What about charitable remainder trust?How does one structure the deal so that the buyer can afford to buy and the seller can afford to retire?Fortunately, there are many creative planning opportunities available to assist the family business owner who desire to create an exit strategy.Planning in advance becomes the key.

Without question, there are many choices to be made regarding business transfers during a lifetime.One option the family business owner always struggles with is whether or not to sell the family business to family members or an outside third party.In the event of structuring a sale with family members, several particular questions should be addressed. More…

After Divestiture: Shifting Your Focus from Investing in the Family Business to Investing in Financial Security

After Divestiture: Shifting Your Focus from Investing in the Family Business to Investing in Financial SecurityNortheastern University

Family Business Quarterly
by Michael Winter and Josh Gold
Bear Stearns

Relinquishing control of the family business that the owner has spent a lifetime building is both a complicated and painful affair. Part of what makes it difficult is deciding what to do with the proceeds from cashing out.

The principal of a family business typically has had the majority of his or her personal net worth invested in the company for many years. This individual hasn’t had either the time or the inclination to become well versed in the public financial markets.

Yet senior members of family businesses are often thrust into the position of having to provide both income and future financial security for themselves and their spouses. Ensuring personal financial security as the business is either passed to the next generation or transferred to outside sources demands thorough attention and due diligence, even for someone experienced in the ways of the public markets. More…