Compass Point Family Business Service

The Family Business Dilemma

Transfer of wealth, including concerns of spoiling the children, gift taxes, and estate taxes, are big issues. The numbers are not in your favor as only 30% of family-run businesses succeed to the second generation, and an even smaller percent, 15%, survive to the third.

ServicesFamily Business Advisory Services

To build a strong business and a healthy business environment

Family businesses offer a unique set of challenges due to the overlap of family, business and ownership domains. Often this overlap leads to conflict that interfere with the business keeping on track for True-North.

Family businesses often experience more difficulty in succession planning or exit strategies as well. Handing over the reins is a difficult and gut wrenching process for many business owners.  It can be equally painful for the children, as many are not interested in taking over the family business, but don’t know how to communicate this to their family (or their family won’t listen to them).  Just because a child doesn’t want to take over the business doesn’t mean there can’t be a business legacy.

Proper preparation of the next generation of leadership, including work outside the business to get a taste of the real world, is often overlooked or unappreciated. Transfer of wealth, including concerns of spoiling the children, gift taxes, and estate taxes, are big issues. The numbers are not in your favor as only 30% of family-run businesses succeed to the second generation, and an even smaller percent, 15%, survive to the third. The reason is most family businesses don’t take the time to think through the options and get prepared.  An orderly transition is not an event; it is a process.  Three to five years is a minimum, ten to fifteen is better…the more time allotted for planning and preparing, the better the transition will be.

Compass Point has worked with hundreds of family businesses. We help family and non-family members of a business come together to build a strong business and a healthy business environment, as well as assist ownership transfer and succession.  Our membership with the Family Firm Institute provides on-going professional development in this unique spectrum of business.  Give us a call to discuss your family business and how we can serve you.

> Download our whitepaper: The Unique Qualities of a Family Business