Exiting your business:
Planning for a succession
In order to increase the chance that the succession is a success, you should:
- decide who will best be able to take the business forward
- allow your potential successor to build up relevant experience, either in your own or other businesses
- train your successor to take over your role, give them responsibility, and have a contingency plan in case they decide they do not want the role
One of the instances where family successions do not always succeed is when different family members have different objectives for the business, and doing what is best for the family is not necessarily what is best for the business. Examples include:
- family members taking excessive salaries or drawings from the business
- family members being promoted above their level of competence
- conflicts between family members about the future direction of the business
All family businesses will have different issues to consider, and you should consider preparing a formal succession plan. Using external advisers can be very beneficial in this process, and we would be pleased to help.
 | |
Where next?
- Planning your exit
- Selling your business
- Floating your company
- Exiting a partnership or minority shareholding
- Closing down
- Tax issues
General...
- Contact us about this issue
- Read about how we can help you & your family
- Request a meeting with us
