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Several studies have shown that a systematic approach is a major factor in a successful succession. Generally, the planning will first relate to the transfer of the management, and then to the transfer of the ownership.
As appears from the following figure, within the succession framework, planning is necessary around five poles: the family business itself, the family, the incumbent leader, the successor and the ownership.
The following plans, among others, can be worked out around these five poles :
The business
- a governance plan;
- a strategic plan : within the succession framework, the incumbent leader, the successor and other stakeholders (for example passive shareholders, bankers, etc.) have an interest in knowing what the strategy of the family business is.
The family
- formulation of the owner´s vision;
- family governance :
- family charter;
- family forum.
The incumbent leader
- formulation of his new role;
- timing of the succession;
- financial planning;
- emergency plan;
The (candidate) successor(s)
- study plan;
- career plan;
- training plan;
- mentoring plan;
The ownership
- legal planning;
- tax planning;
- shareholders´ agreement;
- setting up of control structures (family holding companies, foundations, trusts etc.);
- valuation of the family business.
Not all families have to have all plans. What is truly necessary and useful will depend on the specifics of the particular case.
Jozef LIEVENS is a lawyer and partner in the Eubelius law firm. He is managing director of the Institute for Family Business and FBNet Belgium. He teaches a family business course at the European University College Brussels (EHSAL). He is a Fellow of the American Family Firm Institute. His website is: www.familiebedrijf.be |
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