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Financial Consulting

Wealth Preservation in Business and Real Estate

A majority of high net-worth families have built wealth through the ownership, growth and sale of mid-market businesses and real estate. But research indicates that for 98 percent of these families, their great grandchildren will not see any of this wealth — it will be gone.

How can you avoid becoming one of these rags to riches to rags stories? Let’s look first at some of the causal factors related to the business.

Lack of planning

Many business owners lack a succession plan for their enterprise. Why? Many owners:

Lack of sale preparation

Many businesses change hands under unfavorable circumstances that could have been avoided:

Positive circumstances under which transitions occur

We are trying to create the most positive environment possible for the transition of ownership of the businesses we advise. Here are three ways in which these ownership transitions successfully occur:

Avoid becoming the obstacle

Owners who don’t address succession, inheritance and estate issues may prevent the preservation and growth of the social, intellectual, human and financial capital they worked so hard to create. The result is broken communication, rivalry, unmanaged conflict and lost wealth. Ask yourself:

There is help if you want to create choices and have impact over the future of your family enterprise. Trusted professional advisors will work with you to create an integrated plan and build the skills that will preserve business wealth and greatly increase the likelihood your family enterprise thrives through the next generation. •

Published in 10/16/19 Corridor Business Journal By Maurie Cashman | Guest Column. Cashman is a member-owner of Agri-Management Farm Services LLC and manages its Aspen Grove Investments brand.