Succession Planning - Building for the long term

Many family businesses suffer because the next generation is under prepared or unwilling to take on the challenge of running the business and many family disputes are caused because the succession process appears unfair.

There are a number of issues that need to be considered in order to reach the best decision for you, your family and your business. These include:

Personal plans for the future and timing of succession process  

• Retirement
• Income requirements
• Age
• Influence/control
• Pensions
• Wealth

Preserving your personal wealth 

• Inheritance Tax
• Capital Gains Tax

The ability of the business to function without you 

• Management and employees
• Reward
• Equity vs Non Equity reward
• Non-executive directors

Managing the needs of the business and your family 

• Family constitution
• Investment and dividend policy
• Non-management shareholders - reward and power
• Employment of family members

Business growth plans 

• Future growth
• Financing
• Staffing
• Competition

The desire and ability for the next generation to run the business 

• Next generation
• Training and development
• Skills gap
• Reward
• Fairness amongst family
• Mentoring

Exit strategies 

• Crystallising value
• Positioning your business
• Sale of part or whole of your business
• Ability to extract value

By working with you on your objectives, we can work with you to review your plans. One of our private business specialists can assist you in creating or reviewing your succession plans in light of the significant issues arising.

Think your business may benefit from succession planning? Please contact Gary Telford or your usual PwC contact.