Bank News

  • Succession Planning for a Family Business

    When considering the transition of a family business from one generation to the next, clear communication and careful planning are integral to the ‘success of the succession’. Family business owners are well served to begin planning for the succession long before the event is necessary (experts suggest as long as 15 years prior to retirement). Unfortunately, most business owners fail to plan seriously for their own succession.

    This ‘lack of planning’ may have a great deal to do with the fact that while 90% of US Small businesses are family owned, only 30% stay in the family from the first generation to the second and only 15% make it on to a third generation according the U.S. SBA.