Mar 1, 2011 12:00 PM

While selling may be the easiest route to retirement, other options exist

By Christian Schiller

As the baby boomers reach retirement age, more family businesses are faced with the issue of succession planning. The days of passing the “mom-n-pop” family business from parent to child are long gone. While many retiring business owners would like to maintain the business' independence and keep it in the family, the complexities and pitfalls of the modern economy have made succession a daunting prospect for family business owners. Even if the younger generations or the business' employees are interested in taking over the business, financing and transfer issues often prove to be insurmountable obstacles.

Several factors are currently contributing to the pressure family business owners feel to sell their business rather than work to maintain its independence. While the global economy is showing signs of recovery, the recession has significantly limited access to investment capital, and investors are still extremely cautious with their investments. Even if the younger generation can secure the financing necessary to buy out older shareholders, other factors are often discouraging. Looming tax increases are an omnipresent concern. Furthermore, the intensifying costs and complexities of doing business in the modern economy make the prospect of buying out existing shareholders an increasingly daunting proposition for younger generations looking to maintain the independence of the business.

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

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50 Years Ago This Month

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50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

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