There is not always a clear path for a family business transition. As the owner, you may or may not be ready to retire after years of hard work, but what’s next for the family business? The family may wish to take over, but is this the best decision? What are your options if you decide to sell? Whether the family business is passed down to the next generation or purchased by a new owner, it is best to prepare everyone and everything for the next step.
As with your family, your business doesn’t stand still — it evolves. Family businesses are unique, at the core lies an important dynamic connecting the family and the business through the family’s ownership, which offers both opportunities and challenges. Surrounding each decision you may take, are strong family values and a purpose that helps you navigate the journey ahead. MARKEF‘S advisers understand the dynamics of a successful business and work with you to provide tailored advice — throughout the lifecycle of your business.
Making the decision to transition your business takes time and careful thought. It all starts with understanding your options in order to determine what is best for your company and your family. Involving family members in your thinking can help ensure they are informed and feel comfortable making decisions about their individual and collective futures in business management and ownership.
MARKEF‘s advisers facilitate discussions with individual family members, key non-family management employees, and other stakeholders to obtain a holistic view of all aspects of the business in order to help ensure the decision-making process supports the business and the family.
Succession is one of the toughest and most critical challenges facing a family business. It involves the succession of both the management and the ownership two separate but equally critical functions. Through family communications, management processes, leadership succession strategies, and dispute resolution procedures,
family businesses can successfully integrate family members, assess options, make informed decisions, and increase comfort levels. Consider all the elements that go into passing the business on to the next generation.
Management process planning ensures family members
clearly understand the expectations and responsibilities of
taking over the business. Family and ownership structures
with well defined rules, as well as a family constitution and
family council can all help address these issues.
Leadership succession strategies can help assess and
identify the right leader and develop a program to train and
mentor the next generation.
Communication and implementation of the succession
plan can help identify all the risk factors and ensure
everyone is equally informed on the goals, process and
The sale of your company is a once-in-a-lifetime transaction with only one chance to get it right. Before you decide to sell your company, you should maximize its value. Consider your company from the perspective of a potential buyer when preparing it for sale. Spend time improving cash management procedures, creating a governance framework, or making changes to increase employee retention. Your efforts will be rewarded. You will not only feel more confident that you can pique the interest of more qualified buyers faster and possibly get a better price. You’ll also know that you’re handing over the company in the best possible condition.
The transition of any company can create a variety of emotions. Letting go is no easy task. Taking over the reins can also have its challenges. Selling the business can be just as daunting. In reality, some conflict may be inevitable. Documents, such as shareholder agreements, wills or a power of attorney will help guide the resolution of disputes if things break down. Having established the necessary communication channels and governance structures will allow family members to make informed decisions about their individual and collective roles in the management and ownership of the family business.
Whether you pass on the business to the next generation or decide to find the right buyer, MARKEF‘s adviser can help you assess what’s right for you and your family. Let us take the time to research and explain your options and guide you through the process. Having the right advice during this major life decision can make all the difference. It’s never too early to start talking about the future and ownership of your family business.