On September 21, 2022 attorney Jon Schindel gave a presentation to his peers entitled: Family Business Succession: Exploring Benefits, Challenges and Strategies. Jon presented on the subject in early 2022 and was asked to present again to a different group of attorneys.
The presentation focused on the details of a transaction where the older generation of business owners seek to transition their ownership to the next generation. The content covered a range of topics including:
- Understanding the goals of each generation;
- Creation of a high-level plan and explaining it to owners in non-legalese;
- Mitigation risk for the older generation when there is internal financing for the transaction;
- Concepts for early payoff by the younger generation based on the company’s financial performance;
- Gifting options and process for ownership interests;
- Strategies to protect the older generation to still have a say in fundamental decisions while the younger generation continues to make payments for their purchase of ownership;
- Updating buy-sell provision to fit the new ownership model; and
- The importance of maintaining accurate records of ownership through the transition process.
The presentation was attended by approximately 40 attorneys who participated via Zoom.