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 in California.
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.