Why Should You Have a Business Succession Plan?
Did you know that:
- 95% of American businesses are family-owned?
- Family-owned American businesses generate roughly 40% of the gross national product?
- More than one-third of the 500 largest U.S. companies are family-owned?
A respected national survey established that:
- 79% of small business owners say that they want to retain their business within the family;
- 70% of second generation family members share the hope of retaining the business within the family;
- And yet only 30% of family businesses survive into the second generation.
More than 50% of business owners have more than half of their wealth tied up in their business. With these statistics in mind, perhaps the most shocking is that nearly three-quarters of all family-owned businesses, or approximately 73%, have no succession plan whatsoever! The all too frequent result is that businesses devolve into conflict and chaos when a business founder dies or becomes disabled. Decades of blood, sweat and sacrifice go quickly down the drain, all for want of a simple plan.
Among my greatest passions as an attorney is to ensure that my business-owing clients don’t become a statistic. Together, we craft a customized plan that preserves the value of the business by establishing a clear transition process while also providing the monetary resources necessary to implement the plan without jeopardizing the ongoing financial stability of the company.
If you’re interested in starting the conversation about what you can do to safeguard your business and your family’s long-term security, join me at one of my upcoming workshops on July 31 and August 6 in Danville and Oakland. An experienced financial counselor and I will provide an overview of the “why’s” and “wherefore’s” of business succession planning. We’ll then invite you to schedule an initial complimentary consultation to discuss whether and how you can move forward.
For more information on how to register for one of the upcoming workshops: https://brianripley.com/business-succession-workshop