The sale of a closely held family business can present a number of unique challenges. When multiple family members are involved, either in an ownership or management capacity, decisions regarding the sale can potentially create tension and disagreements. Other wealth management challenges arise when the sale results in a concentrated stock position. Harris myCFO can help you prepare for the eventual sale of your business and preemptively address any problems by working with your advisor to:
- Set up trusts for children and other family members
- Establish a family limited partnership, which can be used to consolidate assets for management efficiency and to facilitate the gift of those assets represented by the partnership units with depressed values, to maximize tax benefits
- Develop a sophisticated investment strategy (including hedging, exchange funds, monetization and other vehicles) to mitigate the risks of a concentrated stock position
- Create a family foundation or donor-advised fund to provide a vehicle for ongoing charitable contributions and to support estate planning needs
- Work closely with next-generation members in both an educational and financial management capacity as the wealth in their trusts grows
- Facilitate regular ongoing family meetings
