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Family Businesses: Controls, Successions and Sales

Originally posted on the BCLP Private Wealth Insight Blog found here.

The family business not only represents the hard work and entrepreneurial spirit of the founders, sometimes across generations, but is often a reflection of the founder’s and family’s values and beliefs.

The family business has the potential to grow, adapt and continue to deliver value across generations – but can it, will it and should it?

Should the founders pass it on or sell it?  Are the options binary?

In weighing up the options, the issues can sometimes seem conflicting.

  • Does the need for financial freedom – to provide financial support to family; to explore new investments or philanthropic ambitions – necessarily mean the family business must be converted to cash?
  • If there is no family member willing and capable of taking on leadership of the business, can the family business, to which the family

Ownership Succession for Family-Owned Banks : Building the Right Estate Plan

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This article describes what to do to protect the bank, your family and your investment.   Originally published on BankDirector.com.

For a number of community banks, the management and ownership of the institution is truly a family affair. For banks that are primarily controlled by a single investor or family, these concentrated ownership structures can also bring about significant bank regulatory issues upon a transfer of shares to the next generation.

Unfortunately, these regulatory issues do not just apply to families or individuals that own more than 50 percent of a financial institution or its parent holding company. Due to certain presumptions under the Bank Holding Company Act and the Change in Bank Control Act, estate plans relating to the ownership of as little as 5 percent of the voting stock of a financial institution may be subject to regulatory

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