Primary Practice Contacts: John E. Gates
We help our family-business clients create a plan that balances the business and family goals and needs
A family-owned business is one in which two or more family members are involved and the majority of ownership or control lies within a family. Ninety percent of U.S. businesses are family owned or controlled.
A family business operates at the intersection of business law and family law. At SCM, we are masters of both. We help our family-business clients devise a strategic plan that allows for balance between family and business goals and needs. We are also attuned to the sensitive interpersonal issues that can arise.
A family business plan must address in great detail ownership and operation of the business. In particular, a family business plan must address succession – who will lead the company in the next generation. Less than one-third of family-owned businesses survive this transition.
Addressing Ownership and Succession Planning
A family business plan must address in detail ownership and operation of the business. A family business plan must address succession – who will lead the company in the next generation. Less than one-third of family-owned businesses survive this transition.
In addition, estate planning involves the financial and tax aspects of transferring ownership of a family business to the next generation. An estate plan should be established as soon as a business becomes successful. It should be updated as business or family circumstances change.
Divorce and the resulting division of the marital estate can also threaten a family business. Our risk-management approach to family businesses protects assets and mitigates risk. Without proper planning, a former son or daughter-in-law can succeed to an ownership position in a family business. We help family business clients consider such possibilities and help them create ownership structures to minimize these possibilities from occurring.
Seeking Amicable Resolution of Disputes Develop
When business and family needs conflict, disputes arise. Often, these disputes are more emotionally fraught than other business disputes. We working closely with our clients to resolve these disputes early on. If they continue, we assist with skilled representation in mediation, arbitration and when needed, litigation.
We look forward to learning about your family business
Our family business attorneys are ready to help. For more information please contact John E. Gates or our Salt Lake office, or Steven W. Beckstrom in our St. George office.