Business owners know that they are going to leave their business
at some point in the future and it's never too early to
consider an exit strategy. After all, the owner will be dealing
with what is likely their most important asset. That said, every
owner has options when it comes to their succession and who will
ultimately own their business. In every case, the process can be
complex, time consuming, fraught with anxiety and has the potential
for animosity. The three basic alternatives are family succession,
management buyout and sale to a third party. Each of these
alternatives has its positive and negative considerations. (See
Exhibit 1)
Family Succession
When multiple family members are involved it is critical to
maintain transparency, fairness and to establish governance and
control measures over the business and personal affairs. Forming a
family council, i.e. an organized forum, can allow for open
communication between family members and can include both
