Matt Stamski Comments on Generational Family Business Transfers With BizWest

In “Legal experts: Having a plan important to generational transfer,” corporate partner Matt Stamski spoke to BizWest about best practices for family business transfers, including the importance of attention to detail.

“The ones I work with personally, it’s [generational transfer] something that is in the DNA of the family, integral to their values,” Stamski said. “They devote a lot of time and attention to it, and I mean the transfer process itself.”

Stamski added, “The ones who have done it well focus on the intangibles — the culture, mission, educating the next generation, the place in the community. Not so much on the profit and loss and balance sheet. Then the next generation feels more invested, more of a connection with it.”

The publication also noted that in cases with multiple members of the next generation, it might be necessary to have additional sources of capital in order to buy out some members. Those sources of capital might come from capital partners, explained Stamski, although it is important to proceed with an eye toward maintaining control of the capital stock. “Families want to keep stock in the family, but if that isn’t feasible, then you still want to have control and a voice over who the minority partner might be.”