Family businesses

 

Many of our clients are family owned businesses, typically set up by the parents, or grandparents, of current management. The aims of a family business are very often different to other companies; to provide a good living for all members of the family, and for the business to pass on intact to future generations.

 

Holding such a business together presents challenges; such as how to choose which child might come into the management of the business and when, how to treat fairly children that do their own thing and how to resolve disagreements between family members.

 

Passing the company on to the next generation presents new challenges; how to minimise tax, but also how to extract the value you need for retirement and how to pass value on without giving up control until you are sure that the next generation is ready.

 

None of that is new to us; our specialist lawyers have advised on these issues for years. Doing so requires detailed knowledge of legal issues such as tax legislation, the use of family trusts and the responsibilities imposed by company law. It also requires experience of similar situations, and a deep understanding of a family’s aims and objectives. We work closely with clients in that way.

 

Examples of recent advice include:

 

Moving a family engineering business on to the next generation, extracting substantial funds at CGT rates (lower than Income Tax) and ensuring that the ultimate control of the business will be kept by the older generation until they are prepared to pass it on;

Using cash in a family farming business to buy shares held by distant relatives;

Selling a family wholesaling business when there were no viable options for succession; investing part of the proceeds in family trusts for the next generation; and

At the request of a family, introducing external professional management into their business and advice on issues arising.

 

To make a no obligation enquiry click here.

Principal contacts

 

Neil Walmsley

Neil Walmsley

 

Simon Ratcliffe

Simon Ratcliffe

 

Mark Daly

Mark Daly

 

Wayne Perrin

Wayne Perrin

 

Andrew Cooper

Andrew Cooper

 

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