Family affair: financing the next generation.

So you want to take over the family business...

...perhaps it's one that has been run by your parents for many years, and now they want to retire and enjoy the good life.

This type of inter-generation business transfer is not so common today as it was twenty or thirty years ago; however, there are still many situations where the children of successful longtime entrepreneurs can acquire the family business. In the process, they can also provide a retirement income for their parents. This situation is probably more typical in smaller communities than in major cities.

If you are in this situation and are contemplating making a deal with your parents, there are a number of issues to consider before reaching an agreement, no matter how informal you may wish to keep it. You should remember that although there are many advantages, there are also some disadvantages to buying a business from your parents.

On the positive side, these advantages are readily evident:

* The history of the business is well known. You should have no surprises about the nature of the business and the commitment …