Here's an interesting statistic that shows just how important family-owned businesses are to the nation's economy: According to the Laird Norton Tyee Business Survey, family-owned businesses generate approximately 64 percent of the United States' gross domestic product—a stunning figure, to be sure.

Yet, beneath that statistic lie problems that must be addressed in order for family-owned businesses to continue into the future. For example, nearly 60 percent of majority shareholders in family businesses are 55 or older. And nearly 30 percent are 65 or older. Clearly, some major changes are ahead for the owners of family businesses.

Despite those numbers, just 27 percent of family-business owners have succession plans in place. Who is in line to take over these companies? The survey shows that very few business owners have thought that far ahead. And that could be a big mistake when it comes to the survival of many of these companies.

It was against this backdrop that Industrial Distribution hosted a one-hour webcast last month titled “Exit Strategies for the Family Business Owner.” The keynote speaker was Dr. Bart Basi of the Center for Financial, Legal & Tax Planning Inc. in Marion, Ill. Basi is a well-known and respected consultant on taxation, business valuation and retirement and estate planning.

As Basi pointed out, exit planning is complex, but it's something every business owner should undertake.

He said there are four major options in planning an exit strategy: Selling or gifting the business to remaining family members; selling to key employees; selling to a competitor; or selling to an investor group. Each method has its pros and cons, of course, but it is imperative that you, as the owner, make that decision and not let it be made for you as part of your estate.

No one likes to think about leaving the business they helped create and nurture. But a proper exit strategy can provide adequate income for you and your immediate family, minimize your tax liabilities, provide for the continuation of your business and ensure sufficient liquidity, Basi said.

To view “Exit Strategies for the Family Business Owner,” go to www.inddist.com/marchwebcast. (Note that this is a paid webcast.)

jkeough@reedbusiness.com