Continuining the series on exit strategies by business advisers PKF, this article looks at family succession, and avoiding some of more obvious pitfalls.
When a business is a key component of family wealth, the owner often has a strong desire to perpetuate it in one form or another. However, achieving this through an orderly succession to family members or other insiders is the ultimate management challenge involving a whole range of business, family, tax and estate issues.
Any transition must preserve the continuity of leadership and it is particularly important that the succession of ownership and management be perceived as a process rather than an event.
The process requires planning, teamwork and constant re-evaluation if it is to have any chance of success. Even the statistics are...