Successfully passing on a family business is a team effort.

Both Neil Jensen, a 32-year veteran Hutchinson attorney, and Scott Ziegler, an accountant with Piehl, Hanson, Beckman for 10 years, agree the first step is to assemble a quartet of experts.

Jensen and Ziegler said an attorney, accountant, financial planner and insurance agent should all be consulted when one is preparing an intergenerational succession plan.

Every plan is different because every company is different, as are the needs of parents and their heirs. Because the process can be complex, Jensen said, “Start early. These business transfers are best done over a period of years.”

Take your time
Jensen said gradually giving an heir more say over the family business allows the parent to see if it’s actually going to work out. “You could sell it to your son and he might quit or find he doesn’t want to do it,” he noted.

“If if I own a business, all myself, and I’ve got two kids, obviously I want to see my business continue on,” Ziegler said.

In planning the handoff, parents must sometimes tread delicately. A child might have the ambition, but not the ability, to ensure the family business continues to thrive. “You’re not going to hand something over to someone that you know is going to fail,” he said.

For more on this story, see the Leader's July 31 print edition.

(Jorge Sosa is a staff writer for the Hutchinson Leader. He can be reached at sosa@hutchinsonleader.com [2])