Why Fair Does Not Mean Equal When It Comes to Family and Business

Watch the video below and download the complimentary tool.

All successful businesses have an exit plan because every business owner will exit from the business, one way or another. The question is for you to determine the right strategy from the four potential exit strategies available to privately owned businesses and their owners. Identifying which strategy at the right time will save you money by aligning your goals with the business objectives to ensure a successful outcome for both the business and yourself. The four possible business exit strategies are:

  1. Pass to Family (“Passer”)
  2. Sell to Outside Third Parties (“Outie”)
  3. Sell to Inside Key Employees (“Innie”)
  4. Planned Liquidation (“Squeezer”)

“Passers” (as we call owners who want to pass the business down to family members) must address a number of special issues to exit successfully. One is how to create a business exit that is fair to all of their children, whether they work in the family business or not. Woven into these issues are family dynamics, relationships, and realities which can undermine the owner’s successful business exit

This short video explores one of those key issues—how to treat all of your children fairly when some of them work inside the business, and some do not. The differences between fair and equal and why you need to prepare a comprehensive plan that is aligned with both your family and your business goals.

 

Download the NAVIX® EXIT STRATEGY CHECKLIST – PASSING THE BUSINESS TO FAMILY that reviews the seven conditions that Passers must meet in order to achieve a happy exit.

Call us to schedule a complimentary discussion to help you outline the plans needed to achieve a successful exit.