“While entrepreneurship is rife with optimism; anticipatory prudence can reap significant dividends for the survival, growth and ultimate maximum monetization of value from the Family Business. Many of these points seem fundamental – but amazing how often they are missing in action:
1) Does structure of corporation anticipate current & future growth?
2) Founders disciplined to reinvest in & sustain business – how best to monetize their investment upon retirement or hand over to 2nd generation?
3) Personal after tax dollars or lower business taxed dollars for 1st & successive generations of shareholders?
4) Shareholder loans vs. business collateral to financial institutions?
5) Deficit of Business Continuity / Succession Planning by 85% of Canadian business owners
6) Personal & Business Wills in place?
7) Transitions from employing Family friends to professionals.
8) How to fund the taxes upon death of Founders to avoid liquidation; diminish a lifetime of work and guarantee continuity.
9) Mentoring / Educating Next Generation to anticipate rigors of change & transition
10) Next Generation ultimate management / operations “take over” or retain professional management company to take over firm?”
Excerpted with acknowledgement & thanks to Susan Yellin, Insurance Journal of Canada, May 5th, 2017.
Brian Etherington is the Chairman at Etherington Generations; a risk management firm that specializes in family life insurance and estate planning. He was appointed a Member of the Order of Canada in 2004 and a recipient 
of The Queen’s Golden Jubilee Medal in 2002 for community service, as well as The Queen’s Diamond Jubilee Medal in 2012. He is a Founding Chair of the Special Olympics Canada Foundation and a chair on the advisory council for the 2019 International Youth Games presented by Special Olympics Ontario.
