Are you planning for a succesion in your company?
If the family-wealth in the business is consisted of more than 50% of the value of the company, it is typical that the owner of a company will try to leave that source of family-income to a next generation within the family.
Nevertheless, if the decision is made to transfer their positions by distributing shares of the company, the successors often will consist of multiple generations and only a few of them would have participated in the business in the past – putting at risk the health of the company at a future state.
By implying a complex, yet effective mechanism, it is feasible to complete such a succession successfully.
However, if there is segmentation of diverse and conflicting interests within the shareholders of the company, it is recommended to implement a variety of alternatives that might mitigate the interests of the heirs of society.
One of these alternatives is by putting the company for sale. This would avoid conflicts of interest, segmentation of the owners, and the making of contradictory decisions.
After completion of such a sales transaction, the heirs would receive the amounts corresponding to the value of the shares they owned.