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Arranging for someone to succeed to your business is an alternative to business disposal, but it probably needs more planning.
Family businesses employ more than 50% of all employees in the UK private sector and make up more than 75 of all businesses in the UK, but only 33% survive from the first generation to the second, and only 13% to the third generation, according to a report from Bournemouth University "Family Owned Business - A study of Central Southern England".
Over time a family business transforms into a far more complex organisation than its original founders will ever have imagined. It will probably have a number of people, whether employees, spouses, children, siblings, retired directors or former owners, who all have different interests in its future.
We can help provide an informed but independent opinion, and guide all the parties to a business structure which -
Whether the day to day management of the business is in the control of a member of the family or not, the person who takes that role needs a range of skills, whatever the business. It is important to plan at an early stage to try to develop the required skills in any member of the family who might take that role. Having tried to develop those skills, it is also important to recognise that some people have exceptional skills in some areas but will never be competent in others.
Decisions sometimes have to be made, which do not suit the personal aspirations of individuals, but which are for the greater benefit of everyone including that individual.
If you plan well, you and your beneficiaries could receive a steadily increasing income from your continuing business, instead of a payment which depends on an offer from an unknown third party.
Business succession or disposal is always easier for a well managed and profitable business.
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