Sangeeta Rabadia What are the key stages of succession planning for a familyowned business? It is always important to consider succession planning at all times, irrespective of where the operational and management lifespan of the business is. It will of course be a hot topic and at the top of the list when there are certain things happening in the business or family. For the business this may be expansion, more family members joining or when the elder generation decides to take a step back. The implications of life events such as births, deaths and even marriages are all something to think about for family businesses. What are the important considerations to take into account during this process? In order for a family to successfully run a business without major issues, it is My Legal Life Succession Planning for Families With Businesses Estate planning is a difficult subject for many families, often laden with emotional challenges and issues of communication. When it comes to planning succession in a family business, these same issues are magnified. Experienced private wealth lawyer Sangeeta Rabadia discusses the subject of succession planning in familyrun businesses in this article, delving into the unique challenges it presents and how a skilled lawyer may overcome them. MY LEGAL LIFE 31 always important to plan and prepare. It is never too early to discuss governance of a family business and it is often a conversation that I have with clients when their business is in its infancy. Having good governance documents in place from the onset will encourage open and honest discussions. It will also ensure that the family know how they fit in and have a mechanism to air any matters of concern. Governing documents can be regularly reviewed and amended to reflect the progress of the business and growth of the family’s involvement. It is very easy to get held up in the actual running of the business and to ignore difficult and often emotive conversations. The following questions may be hard for a lot of members to consider, but the key to a successful family enterprise is to tackle these matters head on and have the difficult but necessary conversations. 1) When will the patriarch retire? 2) What will retirement look like? Will they retain a share of the ownership?
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