What Makes Banks Approve Loans for Family Business Succession?

A study of 95 loan officers reveals four factors that make lenders more willing to finance family business ownership transfers.Every year, many family businesses change hands, affecting millions of employees.But not all of those transfers succeed, putting numerous jobs at risk.Behind many of these failures lies a problem that gets far less attention than family conflict or successor readiness: money.When a son or daughter buys out a parent's shares at a fair price, they usually can't fund it on their own.They go to a bank.And whether that bank says "yes" can play an important role in whether the business survives into the next generation.