Ensure Your Company Survives Through Family Limited Partnerships

For years, Rupert Murdoch and his son, Lachlan, have been fighting in court to rework the succession plan the family had initially planned for News Corp. The goal was to give substantial control to Lachlan when Rupert died, so he could continue his father’s legacy of being a conservative media company.

On September 9, the legal fight ended with a deal in which Lachlan and Rupert Murdoch bought out Rupert’s other three children for more than $1 billion each.

The drama surrounding the succession has been a media sensation for some time, even spawning the TV show Succession.

Of course, that was understandable as this was a battle over billions of dollars and control of one of the world’s most well-known companies.

While most businesses won’t have the outside scrutiny of News Corp., the potential for drama, court cases and litigation is present during any succession.

While it may not prevent legal fights, establishing a Family Limited Partnership may be a great solution to ensure a business survives the death or retirement of its founder.

Think about this. A study on succession talked about in this article from Business News Daily summarizes that a “founding entrepreneur’s death wipes out, on average, 60% of a firm’s sales and cuts jobs by roughly 17%. Also, these companies have a 20% lower survival rate two years after the founder’s death compared to similar firms where the entrepreneur is still alive.”

Don’t let that happen.

The attorneys at The Orlando Law Group specialize in helping businesses structure their succession planning in Orlando, Sanford, Winter Garden and Kissimmee and are here to help you set up the tools and programs that can keep your company running for generations.

What is the Family Limited Partnership?

Family Limited Partnerships, or FLPs, are not a new concept, but it is one that has been shown to be effective in transferring wealth and business ownership with limited tax implications.

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