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    Joshua and Laura Meier Newport Beach Trust and Estate Planning Attorneys Focused on Helping Families with Young Kids
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    Oct 4 12

    Family Business Non-Succession?

    Newport Beach Law Firm

    The problems founders face when an heir
    announces he/she refuses to reign are significant and extend far beyond the
    hassle of hunting for a replacement in a 
    poor quality applicant pool.  The
    real damage done in this circumstance comes from what happens after the founder
    aborts his retirement plans and attempts to change the mind of his/her child.

    Succession of the family
    business can be a fairly difficult transition for just about everyone involved.
    This can be especially true for the heir apparent. What happens when the heir
    pulls away or even outright rejects the business? Well, the transition gets
    tougher still.

    If you are a family business
    owner, are you intending to keep the business in the family even as you step
    down from control? Have you considered the possibility of designating an heir
    who does not want the family business and do you have a “Plan B” to adjust your
    succession plans accordingly? The reasons why an heir may resist taking up the
    reins to the family business are many facetted, but that doesn’t necessarily
    mean they are making a final, informed decision. No, it may take time, talk,
    and some understanding, and there are lessons to be gleaned from a recent Forbes article on the subject titled “5 Ways Family Business Founders Can Change A
    "Made Up" Mind
    .

    Perhaps it’s best to think of it
    this way: when it comes to succession, your estate planning is simply no longer
    just about your wishes, your hopes, or your dreams. Even if they are selfless,
    everyone else has to do his or her own thinking and planning. This can take
    patience, time and understanding.

    Reference: Forbes
    (September 10, 2012) “5 Ways Family Business Founders Can Change A
    "Made Up" Mind




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