What is Family Business Succession Planning?

“True success comes only when every generation continues to develop the next generation”. – John Maxwell

Many family businesses look at succession planning as an event when the founder finally hands over the reins of the family business to his/her next generation. However, Succession Planning, in reality, is not a one-time event, but a continuous process that includes critical decisions, careful planning and preparation in order to successfully transition ownership, leadership and management of the business and the family's assets to successive generations.

Succession planning is a means to protect what the founder has worked so hard to build and a great opportunity to maximize opportunities and create a multi-generational institution that embodies the family’s values and mission for generations to come.

An effective succession plan focuses on four essential aspects of the Family Business, viz, Ownership, Leadership, Legacy & Values and Wealth Transition. These four aspects are key considerations for all three primary stakeholder groups – the owners, the business and family.

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