family business succession planning

Family Business Succession Planning – Some Legal Implications

Family Business Succession Planning – Some Legal Implications

Approximately, one third of family businesses survive into the second generation with 10% to 15% that make it into the third generation. Figures released by the European Commission demonstrate that about one third of family businesses will be transferred to the next generation within the next 10 years. These figures illustrate that it is vital that family succession planning warrants further consideration. A well drafted succession plan can provide detailed instructions of how the founder successfully managed the business. It provides a prosperous resource of information on key contacts, clients and suppliers and any nuances and idiosyncrasies. Yet there are legal implications for the unwary founder even with a successful succession plan. With the recession having had such a harsh blow to ... »