However, good succession planning often means balancing business with emotions given the complex family dynamics at play. It’s important to bring the whole family together to align on a shared vision, values and purpose so you can build a strong foundation for ensuring mutual success.
As with selling your business, it’s important to start the succession process early, usually a minimum of three years in advance of the transition to address the various issues that can arise.
Key considerations for succession planning
- 1. Giving everyone a voice but not necessarily a vote
- 2. Thinking about your long-term legacy
- 3. Preparing the next generation
- 4. Listening to the changing needs of the next generation
- 5. Addressing traditional challenges
1. Giving everyone a voice but not necessarily a vote
Current owners need to listen seriously to the goals and aspirations of their successors. While hearing from all family members is important, having a voice doesn’t necessarily mean someone has a vote on company matters.
2. Thinking about your long-term legacy
Build a framework to ensure business continuity for generations to come. Your long-term strategic plans will help anchor your family business and provide the clarity and assurance the succeeding generations need.
3. Preparing the next generation
Once you’ve confirmed with the next generation that they want to take over, involve them in decision-making and let them manage lower-stakes projects to prove themselves and learn from mistakes.
4. Listening to the changing needs of the next generation
NextGen leaders believe that generative AI is a powerful force for transformation. Engage proactively with the next generation and involve them in GenAI programmes to support the generational transition and prepare them for future roles in the business.
5. Addressing traditional challenges
- Clarify the level of involvement of the founder after handing over the reins and how much control they’re willing to give up.
- Ensure the next generation is ready to step up by honing their business skills away from the family company and respecting the knowledge and experience of current leaders.
We understand the unique challenges of family businesses. We combine our deep insights into family dynamics with technology-enabled solutions to help you navigate this once-in-a-lifetime opportunity.
Contact us
Partner, Corporate Finance - Head of Private Business, PwC United Kingdom
Tel: +44 (0)7763 383782
