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Family Buisness Succession Planning

Family Business Succession Planning: Ensuring a Seamless Transition


As a family business owner, the successful transition of your company to the next generation is likely one of your top priorities. However, effective succession planning is often overlooked or delayed, leaving family businesses vulnerable to disruption, conflict, and even failure.

At Wilcox Financial Group, we understand the unique challenges facing family enterprises. Our team has extensive experience guiding family business owners through the critical process of succession planning. We're here to help you develop and implement a strategic plan that secures your company's long-term viability and protects your family's legacy. 

The Significance of Early Succession Planning: 


Family businesses are the backbone of the American economy, accounting for two-thirds of all businesses worldwide. Yet studies show that only 30% of family firms survive into the second generation, and a mere 12% make it to the third1

WHY? The lack of early, proactive succession planning. Many business owners make the assumption of having plenty of time to figure out the transition, only to find themselves facing a crisis when a sudden illness, disability, or other unexpected event occurs. (Life Happens, everythign is fine... until it's not)

By starting the succession planning process early - ideally 5-10 years before the intended transition - family businesses can avoid these pitfalls, painful unintended concequences and ensure a seamless transfer of leadership and ownership.

Early planning allows you to:

  • Identify and groom the right successor(s)
  • Minimize family conflicts and preserve harmony
  • Optimize the business's financial and operational structure
  • Put tax-efficient strategies in place
  • Prepare the business and the family for the transition
  • Prepare for Common Challenges in Succession Planning

Even with the best intentions, family business succession planning is fraught with complex challenges that require thoughtful navigation, such as:

  • Choosing the Successor(s): Deciding which family member(s) should take over the business is often emotionally charged and prone to sibling rivalry or parental favoritism. Objective, meritocratic selection criteria are essential.
  • Balancing Family and Business Priorities: Separating family dynamics from the business decision-making process is critical. Succession planning must address both the emotional and practical implications for the family.
  • Taxation and Estate Planning: Improper tax and estate planning can saddle the next generation with burdensome tax liabilities, jeopardizing the business's long-term viability. Careful structuring is needed.
  • Timing the Transition: Finding the right moment to hand over the reins is tricky. The departing owner must weigh their own retirement needs against the next generation's readiness to assume control.
  • Communication and Transparency: Open, honest dialogue between all stakeholders - including non-family employees - is vital for building trust and ensuring a smooth transfer of power.


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Steps to Create a Successful Succession Plan

At Wilcox Financial Group, we guide our clients through a 5-step process:

Assess the Business and the Family: We work with you, listen and absorb all the details to evaluate the current state of your company, identify your family's goals and priorities, and pinpoint any potential succession challenges.

Establish Clear Ownership and Governance: We help you determine the optimal ownership structure, create an effective board of directors or advisory council, and define the roles and responsibilities of family members.

Identify and Develop Successor(s): Our team assists in objectively assessing potential successors, create a customized training and development plan, and facilitate a gradual, mentored transition of leadership.

Address Tax and Estate Planning: We collaborate with your legal and accounting professionals to implement strategies that minimize tax burdens and protect your family's wealth for generations to come.

Implement and Monitor the Plan: We work closely with you to execute the succession plan, provide ongoing guidance and support, and make adjustments as needed to ensure its long-term success.


How Wilcox Financial Group Can Help
Being involved in Family-owned business herself, Nicholle our founder understands from a personal level the complexities and seemingly uncomfrotable conversations that can be involved. She has also traveled across the US for over 10 years navigating conversations and planning with multi generational businesses. You don't want to be the family that goes up in flames when something tragic happens. 

Our team's expereince in helping families navigate this critical juncture allows us to offer tailored solutions and unwavering support every step of the way.

Whether you're just beginning to think about transitioning your business or are in the midst of an ownership change, we're here to help you create a comprehensive succession plan that secures your company's future and preserves your family's legacy.

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Let's Go!

Take the first step toward a successful transition and schedule a time for us to talk.

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1https://www.score.org/resource/infographic/infographic-family-business%E2%80%94successes-and-obstacles

Neither MML Investors Services, LLC nor any of its subsidiaries, employees or representatives are authorized to give legal or tax advice.  Consult your own personal attorney legal or tax counsel for advice on specific legal and tax matters.