The challenges of transitioning a business between generations

Transitioning a family business between generations can be a tricky challenge.

Through our experience we’ve developed a series of checks and balances that ensure the process goes smoothly for everyone involved.

As always, open and honest communication is the key.

Firstly, the founders of the business need to be financially and mentally ready to transition to retirement, and the new generation ready to take the reins. This requires significant forward planning over years, and should be put in train well before the succession needs to happen.

Next, planning needs to consider managing long-standing relationships with suppliers and clients, finance arrangements, key people, premises obligations, and much more. We divide all these separate issues up into meeting modules to ensure everything receives the attention it deserves and nothing is missed.

Once resolved, all these are tied up with binding agreements between the parties.

As is always the case in families, everyone has their own expectations of how things should go and what the outcomes should be, so balancing emotions, wellbeing, and the unknown is a delicate task.

But using our approach, honed over many years, provides the stakeholders with the confidence to continue those long-standing relationships and embrace new opportunities.