An article in the New York Times on March 24, 2016, emphasizes the critical need for succession planning in closely held companies. While business succession planning is important at various levels, the fall–out for companies that lose a founder can be particularly bad.
The article notes that most small businesses are family
The majority of the world’s enterprises today are family firms. That is according to David S. Landes, Professor Emeritus of History and Economics at Harvard and author of Dynasties – – Fortunes and Misfortunes of the World’s Great Family Businesses. Dynasties is a fascinating book which highlights the prevalence and importance of family businesses in
All of the assets relating to your business operation do not necessarily have to be in the same company. There may be perfectly valid business reasons to have real estate, equipment and/or other assets in separate entities. The following chart provides an example of a possible business structure.
Many assets in the above structure are
An $8.5 million jury verdict seems high, doesn’t it? But if you consider that the injured party was an infant who suffered brain damage (and will require lifelong care), then the amount of damages could be perfectly reasonable.
According to a recent article by Tom Feran in the Cleveland Plain Dealer, a Cuyahoga County Common
In several prior posts on March 19, 2010, February 23, 2010, November 6, 2009 and July 2, 2009, I emphasized that a business succession plan is critical for most closely held businesses. Yet according to an article last week by Marcia Pledger in the Cleveland Plain Dealer, fewer than 30 percent of small
The Dow Jones industrial average fell 324 points last Friday, its second worst slide of the year. The drop pushed the stock market back into a "correction" — meaning a decline of at least 10% from its recent high.
While I remain optimistic about the economic future of our country, we obviously face great challenges in
In a post last month, I emphasized that a business can be lost or severely damaged by lack of a meaningful succession plan. The title of an article in yesterday’s New York Times says it all — "Lack of Succession Plan Puts Family Venture at Risk". The article has some useful suggestions for closely
A business succession plan is a key component of any asset protection plan. In most cases, a family business constitutes a large percentage of the owners’ assets. Yet a significant number of businesses have absolutely no succession plan in place.
In thirty years of representing family businesses, I have come to understand why succession planning
My law offices are in the Eaton Center Building in downtown Cleveland, Ohio. So a recent headline in The Cleveland Plain Dealer Business Section — stating that Eaton might owe billions in damages in an antitrust case — naturally caught my eye. A jury in federal court in Wilmington, Delaware found that Eaton Corp has
There are a number of relatively simple strategies an organization can use to provide significant protection for its assets.
1. Separate Entities. Consider creating a separate entity (possibly a limited liability company) to hold real estate, machinery, or assets relating to a new line of business. If there were a future judgment against the corporation
