A Case Study in Succession Planning: Should the Sons Start a New Business Entity?

Share Button

Succession planning for a closely-held construction business has many potential pitfalls, including:

  • Reluctance of the founder to relinquish control
  • Absence of family members ready to run the business
  • Squabbles over control of the business
  • Concerns about how to value the business and equalize distributions of the founder’s estate.
  • Income and gift tax liability

Consider the following hypothetical case.

Background

Photo credit: Highways Agency

Dad, the family patriarch, has a wholly-owned corporation (“POP, Inc.”) that has operated a family business for 40 years. Recently, however, regulatory authorities have been particularly critical of certain aspects of the “old school” way the business is being conducted, asserting regulatory infractions and threatening …read more

Read more here:: Construction

About

has written 983 post in this blog.

Share Button