Topics

Can the farm support an additional person or persons? What happens when they get married and have a family to support?

If the business has to expand to accommodate additional people, what are the expansion plans and what are the additional financial and other risks involved,?

Is there a long term business plan and a shared vision for the future of the business? Does it include an exit strategy?

Have job responsibilities been discussed and determined? How will decisions be made?

Does the current ownership/senior management have a plan for development of the younger person with provisions and a timetable for succession?

If other siblings or relatives have already or will be returning to the business, what is their arrangement and how will management succession be determined? Will a younger sibling who demonstrates the talent and ability have the opportunity to move above an older sibling in terms of management responsibility?

What provisions for ownership/wealth transfer are there to complement the succession plan?

Has there been consideration of and provisions for dealing with the 4 Ds - death, divorce, disability and departure - as well as other major contingencies?

How will children who are not active in the business be treated in regard to distributions, having a say in the business, wealth transfer, etc?

How will in-laws be socialized and treated?

As the business is transferred, what if heirs who are not in the business want to sell assets or rent to someone else?

Is there a buy-sell agreement between the current owners and their spouses that will be amended as new owners come onto the scene? Do these agreements address buy-out provisions and terms, how value is to be determined, rights of first refusal, voting rights, restrictions on ownership transfers, etc?

What are the characteristics of successful family businesses?

How will compensation, performance evaluation and distributions be handled? What can realistically be expected? Will different jobs or responsibilities be paid differently?

Have alternative business structures and different forms of equity and debt instruments been considered and evaluated as they relate to achieving business and family objectives?

How will conflicts and disagreements be resolved?

What if irreconcilable differences develop and the partners can no longer work together?