Our guest blogger this week is Tom Deans, author of Every Family's Business:
It occurred to me that the sub-prime and resulting liquidity crisis is nothing compared to the much bigger bomb ticking away in family businesses big and small.
My prediction is that if the banks don't begin to press harder for evidence of real succession plans, the $10 trillion sitting in the retained earning of North American family businesses will dissappear faster than you can say Lehmann Brothers sell Lollipops by the Sea Shore.
When I say "real succession plans" I mean evidence that gifting the family business to junior isn't the plan. Gifting an operating business to dis-interested, ill-prepared, incapable hands of family is not going to cut it with lenders, shareholders, customers or employees.
by Tom Deans, Author, Every Family's Business: 12 Common Sense Questions to Protect Your Wealth. www.ProtectingFamilyBusinessWealth.com