■ Family Business
Continued From Page 14
neys from our tax, estate planning, corporate
and real estate groups—sprang into action. They
began with an extensive multi-state search for a
new home and sought public incentives packag-
es from the competing jurisdictions. As for the
existing property, they obtained assignable re-
development approvals and then marketed the
fully entitled property for sale through a com-
petitive bid process; a 1031 tax-free exchange
into the new facility allowed the family to avoid
a gain on the sale. Tax-exempt bond financing
on the new plant and equipment reduced bor-
rowing costs. And the family used the oppor-
tunity to re-evaluate their estate planning and
partnership agreement. The family business is
now built to last.
Wilentz, Goldman
& Spitzer, P.A.
By Brett R. Harris, Esq.,
Shareholder,
Business, Nonprofit and
Technology Attorney
We often assist family business-
es in the transition from one generation to the
next. Some transactions have been straightfor-
ward, with stock or membership interests even-
ly distributed, particularly when all members
of the younger generation were involved with
the company. More complex issues have arisen
when not all children followed the path of their
parents, and decisions had to be made about
distributing assets and wealth inter-generation-
ally in an even or appropriate way (not always
yielding the same results). At times, proposed
transfers across generations have proven so di-
visive that our clients instead elected to sell the
business so as to preserve family relationships.
A transfer of a family business, whether to the
next generation or outsiders, is a life-cycle event.
We, as advisors. must remain cognizant that the
boardroom extends into the dining room, and
sometimes the best way to grow and protect a
family is divesting a family business.
■ Advertisers Directory
AmeriHealth New Jersey............................. 27
Archer Law ................................................ 28
Columbia Bank............................................. 5
Concrete Washout Systems........................ 18
Donnelly Construction................................ 16
EAI, Inc....................................................... 19
ENRC..........................................................BC
EWMA....................................................... 28
Grassi & Co.................................................. 7
GZA............................................................ 20
Horizon BCBSNJ........................................... 3
ICA Risk Management Consultants............ 25
Levine Jacobs & Co.LLC................................ 2
NJIT............................................................ 13
Norris McLaughlin, P.A................................ 15
NPZ Law Group, P.C. ................................. 17
Peapack-Gladstone Bank............................ 11
PNC Wealth Management......................... IFC
RWJBarnabas Health.................................. 31
Saint Peter’s University Hospital.................IBC
Stuyvesant Press......................................... 21
Triangle Manufacturing.............................. 23
Valley Health System.................................... 1
WE BUILD IT BETTER.
D O N N E L LY C O N S T R U C T I O N . C O M