Brady, Nordgren,
Morton &
Malone, PLLC
2301 Sugar Bush Rd, Suite 450
Raleigh, NC 27612
Toll Free: 1-866-573-8832
Phone: 919-782-3500
Fax: 919-573-1430
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CAN YOUR FAMILY AND BUSINESS ANSWER THESE QUESTIONS?
1. Who would control your company after the present business leader dies? Would
this
successor ownership cause problems? If so, what problems?
2. Are there times when your family values and your business values clash? How
has your family handled these tensions?
3. Are siblings separated in your family business? By location? By job
responsibilities? By other means?
4. Which family members are being paid more than they are "worth?" Less?
5. Does your business leader have concrete retirement plans? If so, are they
realistic? Have these retirement plans been shared with the family? With key
employees?
6. What kinds of financial needs are your younger generation members facing?
Which of these financial needs do you consider legitimate?
7. Is your business leader financially dependent on the future of the business?
Would letting of, stepping back, make him or her financially dependent on the
next generation?
8. If your succession plans are up in the air, is there an heir-apparent? Does
the family agree that your heir-apparent is the best choice?
9. Is the "Someday this will all be yours" signal sent in your family? If so, by
whom? If so, to whom? What assumptions about the future does "Someday this will
all be yours" generate?
10. Has a successor to your present business leader been selected? Has his or
her selection been announced to the family? To your employees? To customers,
suppliers,. and bankers? To the public?
11. If a successor has not been chosen, when is the earliest and when is the
latest that that
selection should take place? What obstacles are in your way?
12. How will your successor's management style differ from that of your present
business
leader? How will that difference affect your employees?
13. What are the most important "unwritten rules" in your company?
14. What are the most important things your current business leader must teach
his or her
successor?
15. What present policies must be continued by your successor?
16. What are the "hard issues" your successor must deal with?
17. What other options are open to younger generation members of your family who
don't go into the business? How long will they (should they) wait for a clear
picture of their futures in the business?
18. Do present estate plans give shares in the business equally to younger
generation members, whether or not they work in the business?
19. If all shares in your company were left to children who work in the
business, are there other assets of equal value that could be left to other
children?
20. Are you presently using company perks to satisfy (or pacify) outside
shareholders?
21. Does your family business have a buy-sell agreement? If so, do you know how
it works and how the price is calculated? Would the pricing formula be fair both
to a buyer and seller in the family?
22. Has your buy-sell agreement been reviewed by your tax advisor since 1986? If
not, may it be out of date?
23. Does your buy-sell agreement cover such eventualities as shareholder
disability, bankruptcy or divorce?
24. How does your family handle irresponsible conduct by family members? Do you
cover for them? Do you pretend the conduct didn't happen?
25. Are your family members good listeners? Does every family member have
someone in the family to talk about personal feelings?
26. Does your family encourage competition among family members? Do they need
encouragement to compete? Do family members compete to please your business
leader? If so, how?
27. How does your family handle emergencies?
28. Would you classify your family as a strong family? If so, why? If not, why
not? If not, what can your family do to become stronger?
29. Are there shaky marriages in your family? If so, how do they affect your
business family? Could stock in the business become involved in a marital
property settlement?
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