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Article: Share and share alike: a stock redemption plan lets family members sell shares while staying in the business.(Family Business)
- Article from:
- Entrepreneur
- Article date:
- June 1, 1996
- Author:
CopyrightCOPYRIGHT 1996 Entrepreneur Media, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WHO CAN PICTURE what a family business will look like if it survives into second and third generations? From a simple mom and pop operation might spring 25 or 30 shareholders--siblings, cousins, aunts, uncles, nieces, nephews, widowed in-laws and a raft of other relatives.
Even assuming the group is devoted to each other, there are plenty of reasons one or more may want to redeem all or some shares of stock. Whether actively involved in the business or not, one family member might need money for a down payment on a house or tuition to graduate school. Another might be going through a divorce and need cash for a settlement. Another might want the money to start his or ...