Have you given thought to how your business will continue when you retire or if you have to step away for some other reason? Who will take the reins from you if it’s a family business; or who will buy out your share of the enterprise?
Succession planning requires thought and planning, well ahead of when you think you will need to activate a plan.
It’s a complex process for any business leader or family group, and can be fraught with questions and emotions. The facilitation and understanding of each stakeholders’ expectations, needs and desires is paramount.
Succession in a Family Business:
- With two or more generations active in the business a key point is for each family member to understand their roles as a family member, their ownership interests in the family business structure and their management roles within that business.
- It’s crucial to ensure that all family members are clear on each member’s roles and responsibilities within the family and the business.
Succession for business partners
- Ensure a shareholders’ agreement is in place to deal with events that may occur while in business together such as death, injury, exit, valuation of the business.
- Consider whether life insurance cover will assist the business in continuing after the unexpected passing of one of the business owners.
Hood Sweeney advisers understand the ultimate goal for your business is the satisfaction of all involved and in the case of a family business, creating a legacy for one generation to leave to the next. Let us help you plan your business journey.