Estate Planning and Probate partner Jake Pollack was featured in “Turning Over the Keys,” American Coin-Op’s two-part look at small business succession planning.
Although some owners may seek an outside buyer, Pollack said others may choose to find a family member to take control of the business in order to preserve the family legacy and maintaining good relationships, while placing less emphasis on immediate financial gain. This process can be more emotionally charged and may benefit from family counseling or mediation to align everyone’s goals and expectations.
“Small businesses are incredibly diverse, and most are family-owned. All families have unique members and dynamics,” says Pollack. “It is difficult to create a template that would apply in all instances, which makes it even more important to utilize a team of trusted advisers to identify pertinent issues and challenges and facilitate the process.”
If a family member is taking over, it is important to treat the transaction as you would one involving an outsider.
“Successful business successions typically depend on an agreement, a plan, and adherence to the plan,” Pollack says. “I generally counsel my clients to allow the successor(s) to handle the business as they deem best and be ready (and) willing to serve as a resource. It is natural for the successor(s) to believe that there is a newer (or) better way to do it.”
American Coin-Op’s two-part report “Turning Over the Keys” can be found at:
https://americancoinop.com/articles/turning-over-keys-part-1
https://americancoinop.com/articles/turning-over-keys-conclusion
