Capturing wealth via a sale of the family business

Planning for the future of your family business can be one of the most challenging tasks for the family; it is also one of the most critical. One of the most difficult decisions for family business owners is whether to transition the business to the next generation or to sell it.

Regardless of the size or age of the family business, considering its sale can be extremely emotional and sometimes divisive. The business is often the result of years, or even generations, of a family’s hard work and devotion. The family’s past role in the business may have created expectations about continuity, tradition, community activities, dividends and even family employment. Often the business also serves as a source of family unity. However, the owners, the board and the family council must take the responsibility for succession planning and preserving the value created by the business. This sometimes means making the difficult decision to sell.

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