SHOP PRODUCTS
Houzz Logo Print
suz1023

??? about passing on the family business

Susan
18 years ago

well,we're finally getting serious about retirement,only because health issues force us to. husband has run his family business for close to forty years and his ambitious and motivated son is ready to take over. question is this,,how do we negotiate a price for the business? due to those pesky health issues,,the company isn't making nearly what it did and what it could again,,so value isn't great. however,,there are some assets,tangible and otherwise. son is to go on payroll and make the company into his own,,he feels he can make major money.. but he doesn't think he should pay for the business because he's "putting his heart and soul into it",,while we thought that since he was on pay roll and was being trained by dad ,,we would come up with a price and offer it to him interest free. this would go a long way to making our retirement work,,since it looks as though retirement is being forced upon us. by the way,,if our son hadn't been preparing to take over the business for so long,,we might have had to close it alltogether,,so he's coming aboard when we really need him,,despite it being a few years too soon.

thank you for any advice,,(besides see a proffesional!!),,i'll be making that call next week. i was just hoping for some logical observations to mull over with my husband. thanks again.

Comments (2)

Sponsored
Kohlmark Flach Architects
Average rating: 5 out of 5 stars8 Reviews
Kohlmark Flach Architects: Enriching Lives Through Purposeful Design