Family Business and Succession Planning

Family Business

What it is

If you own a family business, then retirement is a bit more complex that just not going into the office anymore.

The family dynamic complicates the whole transition because of the relationships and emotions involved. The question would be: what happens to the business when you’re no longer running it?

How it affects your business

As a family-business owner, succession planning should be a priority considering that more than seven out of ten family-owned businesses fail to survive the transition from first to second generation. It is typically due to falling prey either to estate taxes or family discord – or sometimes both.

At XB4, we help you develop and implement a well-designed succession plan to keep your family business up and running. Once we understand how you feel about the business, we start constructing the plan focusing on five issues:

  1. Business Valuation
  2. Business Restructuring
  3. Tax Consequences
  4. Retirement Projections
  5. Tax Projections

Why XB4

Our team of dedicated experts will advise you on your decisions and help you ask as well as answer all the questions you have in mind.

We at XB4 will also assist you with these key issues:

  • Keeping it in the family: Are you going to pass the business on to your family or sell it to a third party? We help you weigh the advantages and disadvantages of each of these options.
  • Who is going to run the business when you leave? Management and ownership are not one and the same. You may decide to transfer management of your business to just one of your children but transfer equal shares of business ownership to all your children, whether they are actively involved in the business or not.
  • Minimizing the tax bite: The tax burden when transitioning a family business can be significant. The challenge is that a family business is not generally a liquid asset, but taxes are typically due when ownership is transferred.
  • Making it fair: Transferring family ownership often adds a tremendous amount of stress to family members. We talk with each of the family members to ensure that they feel they are getting an equitable and fair share of the pie.

Get in Touch Right Now

Whatever questions you might have, our professionals are here to answer that. Contact us now.


Contact Us Right Now

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