As a business owner, it has always been your hope that you could pass the business on to one of your children. You view it as an asset for them, but you also view it as a sort of legacy. You’ve created this business for them and you want them to benefit from it.
However, people often just assume that the children want the business without actually spending the time talking to them. It’s important to keep them in the loop on this process, and you ideally want to have these conversations as soon as you can. The more you can learn about their desires for the business and for their future, the better your planning will go.
After all, maybe your children don’t want the family business. Then you have to consider what other steps you’ll need to take or what options you have.
What can you do?
The easiest thing to do if the children don’t want to take over is to sell the business. You may decide to sell it to an up-and-coming employee who would like to take control, or you may look for a third party outside of the business itself. But selling works because it generates an influx of cash, and you can then leave this money to your children. In this way, they still benefit from the business and it is a legacy that you’re passing on, even if they’re no longer running the company.
Throughout this whole process, take the time to carefully consider all of the legal steps necessary to make sure that everything goes smoothly for your family.