Minnetonka, MN (PRWEB) January 16, 2014
Keeping a business in the family is sometimes not as simple as it sounds. Chaffee & Associates is offering some advice for family business owners who seek to ensure the business stays in the family for the long-term.
In many cases, the older generation needs income security for their retirement. Prior to retirement, that income was coming from their business in the form of salary, draws or dividends. Typically, the younger generation does not have the net worth or income to purchase the business. Also, the younger generation is not bankable or cannot secure a loan to purchase the business.
The challenge, and the opportunity, is for the older generation to get the younger generation to be the buyer. Conversely, the younger generation needs the older generation to be their banker. Once there is a realization that each generation is dependent upon and benefitted by the other, the finances can then be worked out. The older generation now receives income from a buy-sell promissory note, and the new owners are using the former owner's business income to make the payments. The result is a family business retained and transferred to the next generation.
Chaffee & Associates is located at 11100 Wayzata Blvd., Suite 220, Minnetonka, Minn. For more information about them or their services, please visit their website at http://www.callc.com, or call 952-746-6990.
About the company:
Chaffee & Associates LLC is a privately-owned, independent company that specializes in helping individuals, business owners, and families with wealth management, estate planning and business transition. Located in Minnetonka, MN, Chaffee & Associates serves clients nationwide. With more than 100 years of combined experience in the firm, they believe great ideas should not be difficult to understand. Richard J. Chaffee Jr. is committed to providing clients with a holistic approach to wealth strategy and the creation of family financial legacies. He works closely with his clients’ team of advisors to help ensure that the family legacy plan is executed, integrated, monitored, and achieves the clients’ goals and values. Visit their website for more information: http://www.callc.com/.
Securities Offered through M Holdings Securities, Inc., a Registered Broker Dealer, Member FINRA/SIPC. Chaffee & Associates is independently owned and operated.
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