In every family business ownership transaction that I have been involved with, an inevitable goal is to not over-stress the company. A structure needs to strike a healthy balance between what is rational and what is reasonable for the business. Careful consideration must be given to layering a transaction structure on the company’s existing capital structure and cash flows. It’s critical to evaluate what the impact will be to the business as well as whether the senior generation’s needs will be met.
Steven E. Staugitis, Director, offered three key action items when structuring a family transition plan in this article for Philadelphia Business Journal.