Family Business Management
TABLE OF CONTENTS
INTRODUCTION
UNDERSTANDING THE FAMILY BUSINESS
What is a Family Business?
Issues in the Family Business
Who Are the Actors?
BALANCING FAMILY AND BUSINESS GOALS
Business Strategic Planning
Family Strategic Planning
The Family Retreat
CHOOSING A SUCCESSOR
Initiation
Selection
Education
Transition
Letting Go
Board of Directors
Making Succession Work
Summary
ESTATE PLANNING
Transfer Tax Deferral Techniques
Transfer Tax Exclusion Techniques
SUMMARY
REFERENCES
APPENDIXES
A. Family Business Assessment Inventory
B. Strategic Plan Checklist
C. Pre-Retreat Planning
D. Assessment of Candidates
E. Information Resources
INTRODUCTION
Family-owned businesses are the foundation of a stable economy, yet they experience unique problems. Their troubles range from complex legal and tax estate planning issues, to family conflicts, trials and tribulations from the progression of families and businesses through evolutionary but not compatible stages of development, and last but not least, lack of succession planning. Research has clearly shown that approximately 30% of family firms succeed in making a successful transition into the second generation, while as little as thirteen percent of family businesses pass the torch to the third generation. Intergenerational family business management education is vital for business students and for family businesses in the community in order to successfully make the transition into the next generation, and successfully continue to remain in family hands.
The family business is a vital force in the Indian economy. About 80 percent of all Indian businesses are family owned or controlled. They range in size from the traditional small business to a few of the Fortune 500 firms. It is estimated that family businesses generate about half of the country's Gross National Product and half of the total wages paid. The Indian economy depends heavily on the continuity and success...
View Full Essay