The family business guide : everything you need to know to manage your business, from legal planning to business strategies

A practical guide to best and worst practices for family businesses--from drawing up incorporation documents to succession planning to selling the business. The book also includes examples from actual court cases and presents these lessons in an accessible manner. Sample legal agreements are included which help to avoid some of the major risks to the family business. Cover......Page 1 Half Title......Page 2 Title......Page 4 Copyright......Page 5 Contents......Page 8 Acknowledgments......Page 10 Introduction......Page 12 1 Succession Planning......Page 18 2 Family Employee Agreements and Shareholder Agreements......Page 40 3 Governance Structures for Family Businesses......Page 58 4 Worst Practices: What We Can Learn from Family Disasters......Page 74 5 Compensating Family Members......Page 88 6 Creating Phantom Equity Incentives for Key Employees, Both Family and Non-Family......Page 96 7 Dealing with Inactive Minority Shareholders......Page 106 8 Eliminating Minority Shareholders......Page 114 9 Family Businesses in Financial Distress......Page 122 10 Selling a Family Owned Business......Page 130 11 Preserving and Transferring Family Wealth......Page 144 12 Family Businesses Going Public......Page 154 Appendix 1: Selected Portions of a Speech by Philip Clemens, Chairman/CEO, Clemens Family Corporation October, 2008......Page 172 Appendix 2: Prenuptial Agreement......Page 184 Appendix 3: Irrevocable Spendthrift Trust......Page 208 Appendix 4: Phantom Unit Agreement for Key Employees......Page 226 Appendix 5: Private Company [Sale or IPO Exit] ABC, Inc., 2010 Stock Option Plan......Page 240 Notes......Page 278 Index......Page 286 Cover 1 Half Title 2 Title 4 Copyright 5 Contents 8 Acknowledgments 10 Introduction 12 1 Succession Planning 18 2 Family Employee Agreements and Shareholder Agreements 40 3 Governance Structures for Family Businesses 58 4 Worst Practices: What We Can Learn from Family Disasters 74 5 Compensating Family Members 88 6 Creating Phantom Equity Incentives for Key Employees, Both Family and Non-Family 96 7 Dealing with Inactive Minority Shareholders 106 8 Eliminating Minority Shareholders 114 9 Family Businesses in Financial Distress 122 10 Selling a Family Owned Business 130 11 Preserving and Transferring Family Wealth 144 12 Family Businesses Going Public 154 Appendix 1: Selected Portions of a Speech by Philip Clemens, Chairman/CEO, Clemens Family Corporation October, 2008 172 Appendix 2: Prenuptial Agreement 184 Appendix 3: Irrevocable Spendthrift Trust 208 Appendix 4: Phantom Unit Agreement for Key Employees 226 Appendix 5: Private Company [Sale or IPO Exit] ABC, Inc., 2010 Stock Option Plan 240 Notes 278 Index 286 0230105157,9780230105157 Palgrave Macmillan, 2010 A practical guide to best and worst practices for family businesses - from drawing up incorporation documents to succession planning to selling the business. The book also includes examples from actual court cases and presents these lessons in an accessible manner. Sample legal agreements are included which help to avoid some of the major risks to the family business.