Succession planning is often a thorny obstacle for families to overcome. Sensitive as all issues of this nature are, it is often tempting to put off discussions to avoid conflict. However, smart succession planning is essential to a family empire for a number of reasons, and with the right action plan, it can be handled without undue infighting.
It is impossible to overstate the importance of succession planning. With reports suggesting over US$31 trillion in wealth is set to be migrated to the next generation over the next decade, this kind of wealth transfer requires careful, precise, and strategic handling.
What’s next for the empire?
The first step to developing a succession plan is to decide what’s best for the business long-term. There are generally three routes a family-owned enterprise can take when the current leadership is ready for a handover.