You should be aware, however, that of the businesses in the U.S (90% of which are family owned) only about 30% make it to the third generation, and only about 15% of the original number survive into the forth generation.
There are many reasons for this, including internal family disputes that may have lasted decades, as well as the lack of interest by succeeding generations in continuing to be involved with the business or a shortage of management capability within the family. There may be other reasons, for example, little depth in the ranks of current management and a lack of a clear consensus on who should run the business after the original owner leaves or dies.Therefore you cannot expect to realize the maximum value of your business or ensure its continuity unless you have a business succession plan in place, and keep it up-to-date as developments within the business, and the economic and industry environment change.
The Bedrock Succession Plan Process
Bedrock Financial Advisors will help you to respond to these and other related issues with an integrated succession plan that includes the following aspects, among others:
An elaboration of goals and objectives for business succession
An assessment of your firm’s business strategy going forward
Assessment of management within the firm, and identification of individuals who may have the experience and capabilities to take over the reins or move up within the organization
An up-to-date business valuation
The current state of your retirement plan
Analysis of any shareholder or partnership agreements, and updates if necessary
Analysis of current compensation for key employees, and plans for their future compensation
Consideration of potential exit strategies, including sale of the business, merger with another firm, transfer of shares of the business to current family members or employees (e.g., ESOPs), etc.
Not affiliated with the U.S. Federal Government or any government Agency. Investment Advisory Services offered through BWM Advisory, LLC (BWM). BWM is registered as an investment advisor and only conducts business in states where it is properly registered or is excluded from registration requirements. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark. Any comments regarding guarantees, safe and secure investments and guaranteed income streams or similar refer only to fixed insurance and annuity products. They do not refer, in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by BWM Advisory, LLC. Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.