The Land of Wealth is often considered the land that can cause the most heartache and conflict within a succession process. However, it need not cause any distress if the Land of Wealth is approached and crossed with preparation, a true understanding of equity and a good dose of communication. Ultimately, you want to achieve a true fairness in wealth allocation.
Conditioning For Transition In 2019
Family business succession is not a single event, nor does it occur overnight. It requires preparation and conditioning before being commenced. During the months of December and January, ‘Orienteering Succession’ will revisit the journey of succession and each of the lands that will need to be crossed.
Summer Series – No. 5/7
Three Selected Articles:
‘I can’t wait to get my hands on the business and then I can run it the way I want.’
Active Knowledge Question:
Are you growing the next generation of capable stewards/leaders or are you just holding out to pass ownership over when you are ready?
The ‘skipped generation’ in family business succession is real and represents a clear risk to many multi-generational family businesses.We are all living longer these days and many can expect to live into their 80s and beyond. But what does this mean to family business succession processes?
Active Knowledge Questions:
When will you pass ownership and control to the next generation? And will that underpin their commitment to the family business and its growth and transition to the next generation?
Knowing where your wealth lies and considering how you intend to transition and share it with the next generation in a family business transition can be complex. Take the time to get it right, discuss it with your family, and seek professional advice early. Settling your wealth allocation principles is one of the five lands that you must transition in developing your family business succession plan.
(Note: This is a master article containing links to 8 other articles).
Active Knowledge Question:
Have you addressed all the issues required to settle the wealth allocation principles in your family business succession?
Before you leave this Land of Wealth you must have:
- Drawn the wealth map for your family group.
- Located and gathered supporting documentation of ownership and control for all entities.
- Sought legal advice where applicable on any points regrading ownership and control that are unclear.
- Written up your initial thoughts of:
- Allocation of wealth across the next generation.
- Specific assets/entities to be transitioned to various family members.
- Considered and allowed for you and your spouse’s individual financial needs.
- Communicated your approach to allocation with family members to ensure their support and not to give rise to any future conflicts.
An entirely new level of performance.
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All the best in the success of your business,