Furthermore, tax advantages should not be allowed to blind one to possible adverse effects on management.
Ideally, the founder has been able to arrange his or her personal holdings to create wealth outside the business as well as within it. In that case, he or she may bequeath comparable shares to all heirs while allowing business control to remain with the child or children active in the business. Planning and discussing the trans-
fer of ownership is not easy, but such action is recommended. Over a period of time, the owner must reflect seriously on family talents and interests as they relate to the future of the firm. The plan for transfer of ownership can then be firmed up and modified as necessary when it is discussed with the children or other potential heirs. In discussing exit strategies in Chapter 14, we explain a variety of possible financial arrangements in the transfer of ownership.