The Family-Shareholder Wealth Roadmap

There are a number of means that shareholder wealth in a privately held businesses can be inadvertently diminished. Delays in distributing cash returns to shareholders can significantly decrease overall returns when accounting for inflation and the time value of money. Many family-run companies also shy away from taking on debt. They instead use equity capital to finance their expenses, which impacts funds available for future investment in addition to sacrificing returns on more lucrative investments. To avoid common pitfalls that lead to a loss of wealth, it is important to recruit  a team of experienced professionals that have expertise in finance, wealth management, tax and estate planning, and business operational management. Estate planning attorneys implementing a holistic, goals-driven approach to creating a family succession plan can positively impact business longevity and overall wealth management. 

See George Isaac, The Family-Shareholder Wealth Roadmap, Wealth Management.com, August 28, 2017.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.