Fremont Bank Helps Family Businesses Transfer Ownership to Next Generation
Hosts local event to share tax and legal pitfalls of ownership succession
FREMONT, Calif., July 15, 2013 -
Fremont Bank, a leading full-service community bank in California, recently
hosted an event designed to help local, family-owned businesses understand how to
successfully transfer ownership to the next generation of family members. More than
50 area business owners learned about tax and legal pitfalls of ownership succession
that can make it difficult for businesses to survive as family-owned enterprises.
According to the Family Business
Institute, only 30 percent of family-owned businesses survive into the second
generation. By the third generation, just 12 percent of family-owned businesses
are still viable.
“We’re committed to helping business clients avoid the pitfalls of succession
and successfully transition to the next generation of family ownership,” said
Kim Burdick, Fremont Bank’s senior vice president of community banking. “Many
individuals and couples often give their lives to build strong businesses they hope
to pass on to their children and grandchildren, only to see their hard work undermined
by unforeseen obstacles.”
Burdick noted the importance of bringing local businesses together to learn as a
group and to also learn from each other. “Family-owned businesses are at different
stages of development. Some are first generation, others are second and third. One
of our objectives with these types of events is to give business owners an opportunity
to share their experiences and lessons learned for the benefit of others.”
Local estate planning expert Linda Gonsalves, managing partner of Gonsalves & Kozachenko,
and business consultant Bill Norwalk, tax partner-in-charge at Sensiba San Filippo,
presented to the attendees, followed by a question and answer session. Both Gonsalves
and Norwalk sit on Fremont Bank’s board of directors.
The event marked the second in a series of three events to help business owners
transition a family business from one generation to the next. The third event, which
will be held this fall, will feature Jeff Voorhees, an organizational development
expert, and will focus on the emotional, family dynamic of ownership transition.
Voorhees has helped major companies, universities, and public sector entities deal
with and manage organizational change.
Hosting “next generation” events at the bank was originally the idea
of Hattie Hyman Hughes, executive vice president of Fremont Bank’s Nonprofit
Group. Hughes is the daughter of Morris and Alvirda Hyman, who started Fremont Bank
in 1964. Fremont Bank is currently one of the oldest, independent family-owned banks
About Fremont Bank
Fremont Bank (www.fremontbank.com)
is a leading retail and commercial bank, California mortgage lender, award-winning
top philanthropic business and consistently ranks in Bay Area News Group’s
“Top Bay Area Workplaces.” Founded in 1964, Fremont Bank is one of the
oldest independent family-owned and managed banks in the state and focuses on personalized
service for clients. It has 18 branches across the counties of Alameda, Contra Costa,
Santa Clara, San Francisco, and Monterey with loan production offices in Sacramento
and Los Angeles counties. Find Fremont Bank on Facebook at
www.fb.com/FremontBank and on Twitter at @FremontBank.