It can be difficult to separate the boardroom table and the dining room table. Family businesses need advisors who understand the unique dynamics of family members and different generations working together.

Susan founded an inventory management software business in 2001 and the company grew successfully for 10 years. In 2011, Susan’s son Roger entered the business in a business development role. He and Susan both planned on Rodger gradually taking on more responsibility and eventually taking over the company upon Susan’s retirement. However, since the business was a certified women-owned business, and had secured some government/public contracts, the business stood to lose some of their potential contracts (and a significant amount of the company’s value) when Rodger took over.

The LionsBridge team understands that successful business transition planning needs to start at least 3-5 years out. We helped Rodger and Susan design a new business plan, targeting a more diverse client base. Over the past 5 years, the business has increased by about 23%, and the client base grew through the acquisition of private sector clients.
We also helped Susan and Rodger negotiate a transition agreement that included a gradual transition of shares of the business to Rodger. This allowed Susan too slowly withdraw her personal resources from the business to provide for her retirement without depleting the bulk of the companies resources at once. The agreement also outlined a methodical transfer of duties. We also helped Rodger and Susan back up the transition agreement with a life insurance policy, ensuring that in case of worst case scenario, neither would be left financially devastated.

As of January 2015, Rodger is now managing sales and marketing, product development and operations/administration for the company. Susan is managing a few key clients, but is getting closer to a comfortable retirement spot. She is able to spend 3 months of the year at her home in Florida.

The LionsBridge advisors understand the unique dynamics of running a family business. More than any scenario, family business affairs are completely intertwined with personal financial matters. Our holistic wealth management model streamlines your decision making process and helping you achieve financial success.