Patten and Company

Keep Family Businesses Going for Generations

According to, 80-90% of all firms across the globe and the top 500 largest family-owned firms generate a combined annual revenue of $6.5 trillion which totals an economy only smaller than the U.S. and China. These firms have effectively been able to pass down control of the company to the next generation.

Based on a survey done by EY’s Global Family Business Center of Excellence and Kennesaw State University’s Cox Enterprise Center, two-thirds of the world’s billionaires are self-made and plan to hand over their company to a family member. The most daunting task was said to be designating the person responsible for succession planning and implementation. Succession planning should be done sooner rather than later to ensure that all those involved presently and in the future have a clear understanding of the business and its values from a young age.

Carl Pohlad, a billionaire financier, Minnesota Twins owner and Forbes 400 member, cultivated good business judgement and discipline early on. He spent three decades including his three sons in business practices, mentoring them and including them in business decisions.

According to the survey, communication amongst the family is strongly emphasized to ensure smooth transition. Although family arguments and disagreements can surface amongst high-stakes business decisions, successful communication and proper grooming allow for families to work out disagreements and focus on the succession of the business.

If you are looking for family office assistance for your business, call 214-696-1922 and ask for Mark Patten.

McKinnon Patten is a Local Dallas CPA with expertise in succession planning. We can help ease the transition of passing down the business to the next generation.

Other Posts

Understanding Seller’s Discretionary Cash Flow (SDCF)

A Valuation Metric Just for Small Businesses: Valuing a small business, like a mom-and-pop restaurant, requires a different approach than what you’d use for a large corporation. Traditional valuation methods, such as discounted cash flow analysis or price-to-earnings multiples from publicly traded companies, are often too complex and irrelevant for small businesses. Instead, valuation advisors turn to a more suitable metric: Seller’s Discretionary Cash Flow (SDCF).

Read More »

Planning for a Business Loan: How to Be Prepared and Secure the Best Terms

At Patten and Company LLC, we understand the unique challenges and opportunities businesses face to secure funding. If you’re building a small business and haven’t yet needed to borrow funds to expand or smooth out cash flow irregularities, you’re doing something right. And if you have borrowed and everything went smoothly, kudos again. For those who foresee the need for credit in the future, anticipating this need well in advance can significantly enhance your ability to secure a loan with competitive terms.

Read More »

Let's Connect

Request a Consultation.