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Succeed with Succession Planning
We are hosting a family business seminar on Friday 5 April 2019 in collaboration with Herts Chamber and in anticipation of that I have prepared this brief article summarising the key ingredients that I consider important for any family business to be successful with its succession planning. This can be broken down into the following areas.
It is essential for any business to plan its strategic goals to ensure that it will be not only successful on a day-to-day basis, but the succession plan will also work.
There must be a clear understanding by all parties, including those that are not involved within the family business, about what is the strategy and succession plan.
A strategic plan must be clearly set out providing sufficient details to the shareholders, directors and other family members so that there can be no uncertainty about what are the aims and objectives.
This is often the area of greatest weakness because those involved with the business do not keep those outside of the business informed about what is happening. This is an understandable oversight but by paying attention to it, it can prevent friction from arising at the time control of the business is passed down to the next generation.
You should consider involving not only those in the business, but also the other family members appropriate advisers, (whether it be from the legal or accountancy background), or other business advisers that have been through this process before, to tap into knowledge and resources that are available and can help make the strategy a success.
Like any plan it will need to move and adapt as circumstances change. Any strategic plan must be reviewed and updated as situations develop.
Lastly, the key to any successful business is the drive and determination of those involved to ensure that it can fulfil and exceed its aims and objectives. The same applies in relation to the strategy for the succession of the business.
By adopting these key components I believe it will be possible to ensure that the strategic plan for the succession of the family business, whether that will be during person’s lifetime or thereafter, can be fulfilled.
For further insight and to discuss the possible ways of structuring matters please get in touch with Richard Horwood.
Please note the contents of this blog are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.