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THE BEAM // Special Edition: Family/Founder 2.1

Succession Planning

You’ve put in the work to make your family-owned business successful and as you approach retirement, begin to think about next steps. For business owners with children, this decision becomes particularly complex. You not only have to plan for the future of the business, but you must also decide how best to navigate the transition as a parent.

The majority of parents choose to divide ownership of the company evenly amongst their children. While this works well in some cases, the evidence suggests it may not always be the best option. The article “When fair is not equal: Passing the family business to the next generation” offers thought-provoking questions to spark ideas and alternative ways to distribute estates to future generations. And while leadership and ownership are often tied closely together in family-owned companies, the two can be separated if done in a planful manner.

Given the complex nature of navigating family dynamics it is important to start thinking about succession planning sooner rather than later. The above resource is a great way to help you get started, but finding experienced partners with expertise in family business and succession planning, who can help you manage the emotional and organizational transition will ensure sustainability of your company for future generations.

Click here to read more about LymanDoran’s Succession Planning services.