FAMILY BUSINESS SUCCESSION PLANNING PRESENTATIONMGT/306

FAMILY BUSINESS SUCCESSION PLANNING

Introduction

3 Main Issues with Succession Planning

Potential Conflicts During Planning Process

Succession Planning: Relationship Between Family and Business

THREE MAIN ISSUES WITH SUCCESSION PLANNING IN FAMILY BUSINESS Ownership of business: Who is in place to

succeed the business after the owner steps down?

Control of business: Who is responsible for the operations of the business once there is a change of ownership?

Treatment of children: Will the owners children be included in the distribution of the owners estate, before or after their death?

SUCCESSION PLANNING: POTENTIAL CONFLICTS

Conflict when deciding what family member is going to inherit the business.  

 Lack of motivation and difficulties in

retaining employees 

SUCCESSION PLANNING: RELATIONSHIP BETWEEN FAMILY AND BUSINESS

Business is the gateway to financial security for the family

Family is the operator of the business

SUCCESSION PLANNING: RELATIONSHIP BETWEEN FAMILY AND BUSINESS CONT’D

Succession Planning: Who is next in line to operate the business

Family and Business is equivalent to a marriage

QUESTIONS?

REFERENCES Charles D. Fox IV (January 2010 )  The Human Side Of Succession

Planning Retrieved on May 14, 2011 from http://www.fa-mag.com/component/content/article/38

  -features/5033-the-human-side-of-succession-planning.html?tmpl=component&print=1&page=