One of the toughest decisions that any family business may face is whether the business will be passed on to family members or sold by the retiring generation. This decision not only threatens the continuity of the business, but can threaten the family unit itself and often leads to costly litigious disputes.
There are many other obstacles to successful continuation. Fortunately these can be overcome by detailed succession planning on both a personal and business level.
Initially, most family businesses are straightforward in terms of ownership and management as they develop a relatively simple system of natural governance. However, as a family grows, the demographic changes and the roles of different family members become more complex. It can be difficult to establish, and in particular agree upon, a clear balance of power and to have clarity of roles within the business.
If you need advice on this area please get in touch with us and call FMB on 01 645 2002.
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