Capitol Financial Group, Inc.
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    Executive Compensation
    Business Succession
    Wealth Transfer
    Risk Management
    Insurance Company Due Care
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Business Succession Planning
For many of those who start a privately held business, the business represents most of the family’s wealth- and it spans the majority of their lives. In light of this commitment, it surprising and unfortunate that 70% of family businesses do not continue into the second generation.*

One common reason that family businesses are discontinued after one generation is a lack of coordination between ownership succession and management succession. When the time comes to pass on a family business, owners must consider exit strategies while successors examined their vision and passion for the business.

With a large family owned business, multi-generation ownership is a complex puzzle.

CFG works closely with the owners and successors and balance their diverse interests:

  • We coordinate strategies with business valuation modeling; next generational governance issues; and the design of shareholder agreements, wealth transfer objectives, and income and estate tax planning.

  • We counsel family members, including spouses, siblings and key personnel; establish financial requirements and income tax strategies; mediate and emotionally-charged issues and design equalization strategies for non-active children.

  • We address partnering issues with next generation successors; assist in structuring family compensation, shareholder distributions, and shareholder agreements. Other areas include, assisting the shareholder with buyout situations, and developing strategies if you choose to sell to an outside party. We also develop incentive compensation plans to motivate and reward key family and non-family employees.

* According to estimates from the Small Business Administration

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photo: clients shaking hands
"The Capitol Financial Group is knowledgeable, trustworthy and extremely easy to communicate with. I found them to always have our best interest in mind. They were very thorough, accurate and creative when designing both our company’s benefit packages and executive wealth transfer planning arrangements."

Bob Shaw, President
Allied Plywood Corporation, Inc.
Executive Compensation Business Succession Risk Management Wealth Transfer