Avoid ‘Shirtsleeves to Shirtsleeves’ in Three Generations by Shifting Inheritance Vision to Private Capital, Says The Madison Group Report


 New Madison Group Report at Family Enterprise USA Shifts Family Business Inheritance Strategy to Values and Private Capital Focus


A shift in how multi-generational family business owners think about inheritance versus private capital can change not only next ownership generations, but potentially the world, according to a new report by The Madison Group, Inc.

The report, published with Family Enterprise USA, details how a simple re-casting of traditional inheritance strategies among wealthy family business owners can avoid the natural cycle of wealth creation, wealth stewardship, and wealth dissipation, or the well-known axiom, “shirtsleeves to shirtsleeves in three generations.”

Analysts at The Madison Group, Inc., based in Greenwood Village, Colo., focused the report on the critical differences between generational spending needs versus generational values. The report also delves into the issue of “where is philanthropic money best spent?” The full report is available at www.familyenterpriseusa.com.

“One of the more empowering ways for families to look at wealth is to view it as private capital with a shared mission to grow wealth in each generation,” said Mark Richards, President and CEO, The Madison Group, Inc.  “This gives each new generation more opportunities for deploying both private capital and philanthropic capital, and it allows each generation to be in a position to influence the world around them through their investments and their philanthropy,” said Richards.  “This results in families growing all forms of capital including their social capital and their intellectual capital. It also keeps families together with a shared mission, vision, and values.”

The Madison Group report is part of a series of surveys, whitepapers, and information made available by Family Enterprise USA. The reports and papers are published with the hope family businesses will use them in making their multi-generational businesses stronger and more prepared for an uncertain future, according to Pat Soldano, President, Family Enterprise USA based in Washington D.C. Soldano is also President of the Policy and Taxation Group, a sister organization focused on family business policy.

“There are many challenges multi-generational family businesses face just trying to survive,” Soldano said. “These reports are designed to bring the struggles to light, and offer solutions, and in this paper understanding the unfortunate, but typical cycle of wealth creation and wealth dissipation is something that all multigenerational family business owners need to think about carefully as they hand over ownership to the next generation.”

America’s family businesses represent 59% of the country’s private workforce, or some 83.3 million U.S. jobs, research shows. In a recent survey by Family Enterprise USA, it was found family businesses in America consisted of 23.7% in manufacturing, 10.4% in construction/facilities, and 9.75% in real estate.

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About The Madison Group
The Madison Group is one of the largest independent financial firms in the U.S. dedicated to comprehensive wealth preservation since 1968. We specialize in providing affluent families, business owners and executives with unique, tax-efficient wealth transfer and business continuity strategies. We value solutions that have simplicity at their heart and are manageable across generations.

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The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That's why Family Enterprise USA is passionately working to increase the awareness of issues important to generationally-owned family businesses built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates, possible elimination of valuation discounts, increase in capital gains tax, enactment of a wealth tax, and the continued burden of the gift tax, estate tax and generation skipping tax.

Family Enterprise USA promotes generationally owned family business creation, growth, viability, and sustainability by advocating for family businesses and their lifetime of savings with Congress in Washington DC.  Since 2007, Family Enterprise USA has represented and celebrated all sizes, professions and industries of family-owned enterprises and multi-generational employers. It is a bi-partisan 501.c3 organization. Family foundations can donate.

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