Resources

YOUR RESOURCE CENTRE

Keep up-to-date with current events in the legal and business arenas with our Resource Centre. 

01

Building a Successful Succession

Family business succession is the process of transitioning the management and the ownership of your business​. It is a process that can be sensitive and daunting, especially for founders or senior leaders who often find it difficult to let go of the day-to-day management of the family business. But transfer of management does not mean transfer of ownership, and vice versa. The key to a successful succession is planning and taking the time to do things properly. Here are 15 guidelines to help develop a successful succession process:

  1. Succession is a process not an event
  2. Present the business as an option not an obligation
  3. Get outside experience
  4. Hire into an existing job
  5. Encourage the development of complementary skills
  6. Teach the foundations
  7. Start with mentors
  8. Designate an area of responsibility
  9. Develop a rationale
  10. Recognise you are not alone
  11. Have family meetings
  12. Plan, Plan, Plan
  13. Create an advisory board
  14. Set a date
  15. Let go

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02

Building Better Communication: Conflict Management 

Conflict is inevitable in a family business because of the interdependent family, ownership and business systems. One of the goals of a family business is to learn to manage conflict so that the family makes better decisions and relationships can be mended and family and business harmony can prevail. Consider the 6 C’s designing a conflict resolution process for your family business:

  1. Convene
  2. Clarify
  3. Create
  4. Commit
  5. Counsel
  6. Continue  

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03

Building a Decision-Making Framework: Family Governance

Family governance is a framework for joint decision-making among family members based on shared values, a common mission or purpose, and a collective vision for the family’s future. When everyone in a position of ownership, management or governance in a family business understands their role in any decision-making process, the result is greater trust throughout the system. Here are 8 typical issues addressed by a family governance framework: 

  1. The roles, rights and responsibilities of family members
  2. A system regulating the appropriate inclusion of the family in business discussions
  3. The formation of a “family council” to oversee strategic decision-making for the business and strengthen business-to-family communication
  4. The creation of family employment, development and compensation policies
  5. The formalization of business relationships between family members
  6. A mechanism to sell ownership interests
  7. A succession process for leaders
  8. Dividend and distribution policies

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04

Building Nex-Gen Wealth Creators

For a family owned business, stewarding wealth to the next generation is a crucial part of the long-term strategy. But the entrepreneurial spirit that began the family business should not be allowed to fade. How are successors inspired to become wealth creators of tomorrow. Here are 6 steps to develop the next generation of entrepreneurs and wealth creators:

  1. Communication
  2. Documented succession plan
  3. Collaboration is key
  4. Support without undermining
  5. Evolution not revolution
  6. Invest in good advice

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Disclaimer

The materials available on this website are for informational purposes only and not for the purpose of providing legal advice. Please contact a suitable professional advisor to obtain advice with respect to your particular issue or problem. Use of and access to this website or any of the links contained on this website do not create an attorney-client relationship. The opinions expressed at or through this website are the opinions of the individual author and may not reflect the opinions of the firm or any individual advisor.