Family Businesses
Your Business... Your Family.... Your Legacy.
Not every family business passes to the next generation. Children may have different interests, goals or abilities, and even when the next generation wants to participate, the right path forward may not be a traditional transfer of ownership. Owners may need to consider alternatives that provide financial security, preserve what they have built and position the business for continued success.
An ownership transition involves more than determining what the business is worth. It means considering the family’s financial future, the next generation’s role, the continuity of leadership and the legacy the owner hopes to leave behind. For some families, the goal is to transfer ownership and management to the next generation. For others, it may mean diversifying family wealth, bringing in professional management or creating an opportunity for employees to become owners while family members remain actively involved in the business.
What Matters Most to You?
There is no single path that works for every family business. Options may include a family transfer, a sale to management, a sale to another company or private equity investor, or employee ownership through an ESOP.
An ESOP can offer particular flexibility for families seeking to balance personal financial objectives, employee ownership and the company’s future. Depending on how a transition is structured, family members may continue to own shares, serve in leadership or management roles, and help guide the business while employees acquire an ownership stake. Potential tax advantages may also be available for qualifying transactions.
The right path begins with understanding your priorities and exploring the alternatives—not with a predetermined transaction. Preserving flexibility and keeping options open can be especially valuable as you consider your family’s future and the long-term direction of the business.
- Financial security and diversification: Reduce family wealth concentration in a privately held business, plan for retirement and ownership transition, and explore potentially significant tax benefits available to qualifying sellers.
- Leadership succession and continuity: Enable qualified non-family managers to lead the business when the next generation is not ready or suited to take over, while allowing family members to remain involved in management and grow with the company. An ESOP can offer a distinctive path to leadership succession while preserving family ownership and influence.
How Old Harbor Advisors Can Help
- Education first. We explain the available ownership and succession alternatives, including the potential advantages, limitations and trade-offs of an ESOP, so you can make an informed decision.
- Confidential and discreet. We can begin with a general conversation about your objectives and options. Before you share confidential company information, we execute a nondisclosure agreement.
- A collaborative approach. We work alongside your existing legal, tax, financial and other professional advisors as we explore alternatives, evaluate their implications and consider which paths best align with your objectives.
- Objective guidance. We do not promote a single solution. We help you assess the possibilities, preserve flexibility and identify which alternatives merit further exploration.
- A transition on your terms. You decide which path to pursue, when to proceed and which professional advisors to involve.
Start With a Conversation
A thoughtful transition takes time. You do not need to have all the answers—or be ready to make a decision—to begin.
Old Harbor Advisors helps you understand your options and prepare for what comes next, with the future of your business and the legacy you have built in mind.