Session One – Fathers and Mothers – 90 Minutes
The purpose of this session is to provide parents in family business basics for passing the business on to the next generation. The topics covered in this portion of the presentation are:
· Estate planning 101 and the family business
· Cash flow planning for transferring ownership to the next generation
· Establishing rules for having your children join your business
· Methods of getting training for the next generation in your business
· How to handle the differences for children who are in the business and for those who are not in the business
· Transferring not only ownership, but control in your family business
Parents have the challenge of letting go of the business, responsibly preparing their children to take the business over and knowing the business can thrive economically. A major part of making the transfer decision is having the parents have a clear understanding of their own financial situation. In addition, there is the challenge of how to treat children who are not in the business as well as the children who are taking the business over in a fair and equitable manner. This section of the program will give the participants solid ideas they can implement in their family owned enterprises.
Session Two – Daughters and Sons – 90 Minutes
The purpose of this session is to provide information for the junior generation of family business owners about steps they will need to take for a successful transition of family business ownership. The topics covered in this presentation are:
· The psychology of passing the business – what your parents need to hear
· Cash flow planning from the junior generations point of view
· Having the legal paperwork in place – how to work with your parents advisors
· Managing the transition of ownership and control – things you need to provide for your parents and information you need to provide for them
· Understanding the risks in taking over the family business
· Managing the movement in the family business to a sibling partnership or cousin consortium
· The challenge of growth, how to do things differently than your parents did
Children have the challenge of knowing what actions to take and when to take those actions in the family business transfer. Parents will often give false indications of their willingness to let go. This program will deal with how to know when it’s time to act as well as how to manage the transfer process of the business from one generation to the next. In addition, this section will help the children in the business how to deal with their siblings who are not part of the business. The goal with this section of the program is to help the children of family business owners understand positive actions they can take in helping make the family business a smooth transition.
Josh Patrick, CFP®
Josh Patrick grew up in a family business, went through the process of purchasing the family business and then selling the business. He spent twenty years as the President and CEO of Patrick’s Food Service, a food service and vending company serving four branches with 90 employees. In 1995 He sold the company and then joined the financial services business.
His present firm, Stage 2 Planning Partners specializes in helping the owners of private businesses work on strategic and financial decisions that impact both their family and their business. He is the developer of the Stage 2 Business Solution as well as the Objective Review. Both are comprehensive planning methods for helping owners of private businesses achieve higher values in their business and personal life.