Thursday, August 2, 2018
A common mantra for the business world is that, "Family and Business don't mix." This can be due to emotions coming in to play with even the simple decisions, and making the difficult choices even more volatile.
A scenario that occurs more than necessary is when one family member is working less than another member of the family, but yet due to the original payment arrangement and set-up of the business, both of them are earning the same salary, benefits, and possible dividends. A buy-sell agreement, creating a possibility to buy out an owner that is no longer showing as much incentive as they previously had.
No matter the current situation between families, an unbiased third party may be a positive contribution to a family business.
See Merrill G. Jones, II & Zachary F. Lamb, Family Affair: Potential Problems with Family-Owned Businesses, Ward and Smith, July 18, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.