PA Family Succession vs. Outside Sale

Family succession works only when the next generation has the skill, desire, and capacity. When any of the three is missing, an outside sale is usually better than a strained transition.

Cash flow comparison

An outside sale converts illiquid business value to portfolio income. Family succession defers liquidity until installment payments or a later sale.

Family dynamics

Splitting equity among children who don't all work in the business creates ongoing conflict. Equalize with non-business assets instead.

PA tax

Outside sale at full value loses the § 9111(t) exemption. Family transfer preserves it.

Honesty test

If the next generation has not asked to take over, they probably should not.