client journey
Passing the torch to the
next generation.
Transitioning a family business can be tricky, this journey was further complicated when the owner passed away without a transition plan in place.
91+
Years In Business
4
Generations
100%
Family Owned
2
Siblings Bought Out
Family Ownership Transition
Ownership complications arose within a third generation manufacturing business after the father passed away and bequeathed shares evenly to all three of his children. Only the son worked in the business and he brought his children into the company as well.
The other two siblings never worked in the business and did not want ownership responsibility. They requested liquidity for their shares but the son running the business did not want to sell it. Destined provided the following services for the family:
Market valuation to determine share value
Individual and family Vision Sessions
Ownership Transfer Roadmap
Client Results
The Destined team worked with each family member to understand their individual ownership vision and how it would impact the future of the company. A solution was designed to allow the son, that was running the company, to buy out his siblings while also providing growth capital for the business. In the process a roadmap was developed to align the leadership team on the company’s growth goals to ensure the success of the buy-out.
Tax efficient buy-out for siblings
Preservation of family relationships
Individual financial goals achieved
Opportunity created for a fourth generation ownership transfer
“In my humble opinion, this couldn’t have gotten to where it is without your help. Destined showed us an option that wasn’t presented by anybody else. Now, we all see this as the path to transition, while keeping the business in the family.”
3rd Generation Owner & CEO, Bay Area Manufacturing Company