TAMCO Advisors largely focuses on small and medium size businesses and, high-net worth individuals and families. A specific industry focus is in commercial real estate family owned businesses and entrepreneurs.
According to The Family Firm Institute, only about thirty percent of family businesses survive into the second generation, twelve percent are still viable into the third generation, and only about three percent of all family businesses operate into the fourth generation or beyond. Some research indicates that failures can essentially be traced to one factor: an unfortunate lack of family business succession planning.
It is important for private, closely held family businesses and entrepreneurs to review their estate and succession plan. Through planning, businesses can minimize the impact of estate taxes and successfully transition wealth and ownership of their business from one generation to the next. This transfer needs to minimize impact on business operations from a cash flow standpoint, so that the next generation can continue to expand and enhance the business while continuing to have the ability to buyout the previous generation.
TAMCO Advisors in conjunction with tax counsel and valuation experts can discuss the specific aspects of your business and provide an appropriate strategy to meet the goals of the current and future generations of the business. With respect to family businesses, it is not unusual to have some family members very active in the business and others, which are not. In a practical manner, the appropriate structure for the family members working in the business versus the non-active family members can be implemented so that all are treated fairly. This is also important for leadership transition from one generation to the next. Ownership and succession planning is not an all or nothing process. Plans are developed and implemented over a period of time and the control within the organization from one generation can be made at an appropriate pace.
Through the use of various trusts, including Grantor Trusts, GRATS, Dynasty Trusts, etc. a plan can be developed to have an orderly succession of the business from one generation to the next.