How does a lifetime of work become a legacy?

What’s the compelling reason to stay in business together as a family?

Where are the challenges within the business and within the family both for the first generation and the generations to come?

It may be a good idea to avoid the 7 pitfalls in Family Business Succession

1. Last minute planning

Building a collaborative and inclusive family team takes time

2. Dividing everything evenly amongst heirs

Setting clear roles and responsibilities regarding each one’s full potential in relationship to the long term business strategy

3. Keeping the next generation at arm’s length until the very end

Trust is one of the key values to make your legacy happen!

4. Not establishing clear goals & objectives

Developing a common, empowering and unifying mission and goal

5. Deciding succession solely on tax/cost savings analysis

It’s not just the financial success but it’s about the story, installing a collective pride and how the next gen’s are ready and prepared to live that legacy. That is, successful business transitions are mostly impacted by the quality of family relationships first, the preparation of heirs second, and the work done to prepare estate and tax plans third.

6. Keeping your exit plans to yourself

What legacy do you want to be leaving and do you want to be living?

7. Refusing to accept outside help

Knowing when to wear what hat!

The three circle model of a family business as an integrated approach combining Family, Shareholder & Business

It rarely stays just in the family!

What needs to be done

Aspirations

Understand what every family member wants individually & finding a common ground that motivates for collaboration

Next-Gen education

How to make them ‘stewards’ in a changing world

Risks

Identifying the risks that a family faces across its human & financial capital and collaboratively developing a scenario to mitigate those risks

Objectives to be achieved

Dynamics

Aligning needs & interests of each family member. Finding common ground to build a collective purpose that is both empowering and unifying

Values

These are the fundament to build the charter on

Governance

Besides the long term vision of the owners / shareholders it is important to address family governance as well as corporate governance so as to be aligned on best practices in these three areas

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