Continuity and succession planning are critical to achieving a long-term legacy and include things like defining when family members can work in the business, how profits are distributed, who serves on the board and how to plan for next generation leadership.
If a key family member passes away unexpectedly or wants out of the business, there needs to be mechanisms already in place to ensure the business can remain stable through this period of transition. A strategic, well thought-out plan can help provide stability and unity as the family business deals with the stress of change. PwC can work with you on continuity and succession planning to help ensure your family’s desired legacy.
Bringing up continuity and succession planning in the family can cause tensions to rise and some families avoid it just to keep the peace. In PwC’s UK Family Business Survey while 69% have succession plans, only 18% would describe them as formal.
Continuity is critical as it supports the legacy of both the family and the business. It also has an impact on employees and the community and is an important facet of supporting growth and longevity.
Not having a plan in place can put the family business and family relationships at risk.
Family businesses often have family members serving as owners of the business as well as managers. It is common for a family business to evolve from the founder making all business decisions independently, to bring and establish more family members and establishing more structure as the business grows and becomes more successful.
PwC recognises that family businesses struggle with a variety of challenges, including defining when family members can work in the business, determining how profits are distributed or reinvested and deciding who serves on the board.
Continuity planning involves creating a strategic plan that addresses these challenges, along with how ownership is transferred across generations. Families can reduce tension by defining such plans before the challenges have become acute.
PwC will work with your family to set up near and long-term plans to ensure your family’s legacy. Our family business professionals can help you with:
Continuity and succession planning
Ownership and leadership
Testament and emergency plan
Next gen development and responsible ownership
Generational transition and knowledge transfer
Transfer of shares