Do your kids really want to take over your business
Generational succession – handing your business across to your kids or family – sounds simple enough.
But, many families end up in dispute right at the point when the parents, business, and children are most vulnerable.
It’s important that generational succession is managed as closely and diligently as if you were selling your business to a stranger to avoid misunderstandings and disputes – you need to make sure that everyone understands what the transition will mean and everyone is aware of their role and responsibilities.
If you are looking to hand your business to your children or relatives, there are a few key issues for you to think about:
- Do your kids really want the business?
- How much money needs to be taken out of the business during the transition?
- Succession income needs and controls
- Timing your succession
- Need for greater formality and management structure
- Using succession to maintain your family relationships
In ensuring the long-term success of your business, it’s critical to establish a well-designed succession plan.
Coordination of the transition of your business to your successors can be an arduous process. However, with our years of experience we can address the complex issues of business continuation, taking the stress off your shoulders.