Most families in business together know that at some point they are going to have to sit around a table and talk about plans for the future of the business. Many however, don’t know where to start and putting it off can often mean that it never gets done. This month, Debbie Dunlop looks at what is involved in taking that first step just to get to the table.

What makes succession planning so difficult?

Society has changed and this can make it harder for today’s family businesses. Not everyone gets married, or may marry someone who doesn’t fit with the family, there may be children from previous relationships to consider. Daughters are as involved nowadays as sons and parents feel that they should treat their children equally. More children go on to higher education but may want to return to the family business at some point. There are lots of personal factors that make it difficult to even start the process without even taking in to account the skills and experience required for taking on a business.

How can advisors help?



Each family member has their own ambitions and expectations both for the family and for the business. It can be difficult however to see the wood from the trees when you are so involved in both. As a family business succession advisor, I can identify the issues and help the family see that there are not limitless options available to them.

Who should start the process?

The lead has to come from the older generation. This doesn’t mean that they need to have all the answers at the outset, quite the opposite. What they need to do, is let the next generation know that they are starting to think about it. This in itself can help open the discussion and spur the next generation on to get involved. For a succession plan to be successful, everyone involved in the family and in the business needs to be part of the process.

What next?

Before any discussions can start, the family needs to sit down with their solicitor and accountant and understand what the current position is legally. Many families make decisions without consulting their advisors and this can have costly legal and tax implications later on.

It is also often the case that title to property can be held differently from how the family thought it was held. Partnership Agreements and Wills are often out of date, poorly drafted or have never been signed. Even if you don’t feel ready to start the discussion with the family, it is still worthwhile having a review of your affairs with your solicitor.

What are your top five tips for succession planning? 

·        Start early

·        Involve the whole family

·        Stop thinking equality means fairness

·        Start training your successor

·        Get help from an advisor

Putting off business succession planning is the worst thing you can do. It doesn’t happen overnight and you need to have a plan that ensures that you can retire comfortably and that the business you have built continues to thrive in the hands of the next generation’

To contact Debbie call 01465 713 118 or email debbie@mckinstry.co.uk