What are the most likely scenarios..?

Question

private comapany, very successful, 80+ million revenue. Owner dies, few heirs, but they have never had any involvement in business.

What do you think is most likely to occur?

Answer 1

It is impossible to predict what they will do as it is a question of personalities rather than logic.

The two most likely options are:

    1.  Keep the company and existing management

    2.  Sell out

When confronted with estate taxes I suspect that many of the heirs will want, or have, to sell out in order to minimize the tax burden.

There will undoubtedly be some heirs who would prefer to keep the company intact and continue reaping the profits.  This group would be wiling to buy out those who wish to sell, but due to their lack of experience will have a very difficult time obtaining the financing necessary to do so.

My best guess is that those who favor selling out will win.

Jerry-the-bookkeeper