Inadequate Estate/Financial Planning Blamed for Family Business Failures

Inadequate Estate/Financial Planning
Blamed for Family Business Failures

Family Ink
Spring 1996

Editor’s Note:The following data, reprinted by permission from Richard Dino, Ph.D., Director of the University of Connecticut Family Business Program, and based on a study by Karen File, an Associate Professor at the University and Russ Prince of Prince & Associates, clearly points up the need for proper estate planning and periodic reviews to protect the firm and family.

Inadequate estate planning and failure to properly prepare and provide for the transition to the next generation, coupled with lack of funds to pay the estate taxes, were among the three leading causes for the failure of nearly 800 family-owned businesses in recent years.Conflicts with family members not actively involved in the business, was a close fourth. More…

How Family Businesses Can Use Strategic Planning to Promote Positive Change

 

How Family Businesses Can UseNortheastern University
Strategic Planning to Promote Positive Change

Family Business Quarterly

  • How should strategic planning be carried out by family businesses?
  • Is strategic planning different for family businesses than for companies that are not family owned?
  • What can family-business leaders do to ensure that they are planning effectively?

Dr. John Ward–the Ralph Marotta Professor of Private Enterprise at Loyola University, Chicago–addressed these and other essential questions during a recent Full-Day members’ Forum on “Perpetuating the Family Business: The Ultimate Management Challenge.” He presented five key steps for stimulating innovation in well-established family companies that may have grown resistant to change. More…