Ejiofor
In the end, a family business owner has four options for how to dispose of their company sell, give away during their lifetime, transfer upon death, or liquidate.
Instead of leaving it to chance and hoping that those left behind will figure it out, effective succession planning enables the business owner to decide which option works best for the owner, family, and firm.
The conflict between the present generations leaders wants to assume leadership and the founding generations readiness to cede power is a major cause of failing enterprises in many family firms.
The transfer of a family business from one generation to the next may include this tricky subject more than any other, and preparation (or lack thereof) might mean the difference between success and failure for the future viability of the whole family business.
Succession is a problem that every familyowned business must deal with since it determines who will run the company once the existing owners and officials retire or pass away.
Keypoints
- What is a familyowned business
- What is succession
- Planning for succession in a familyowned company
- Frequently Asked Questions
- 1.Strike a balance between control and collaboration
- 2.Embrace the next generations perspectives
- 3.Bolster intergenerational solidarity
- 4.Embed hightrust behaviours
- 5.Codesign standards for readiness