One of the greatest business challenges forย patriarchs andย matriarchs is planning the transition of their family businesses to go on without them.ย
Lingering doubts overย whether the next generation is up to the task keep manyย parents awake at night.ย
The anxiety can stem fromย a reluctance to relinquishย control and concerns over the aptitude and attitude of the next–in–line.ย
And itโs not just uncertainty about the long-term futureย of the business.ย ย
Theย implications for theย wealth, legacy, and reputationย of the familyย also come into account.ย
Stress pointsย
In my experience advising business families,ย keyย sources ofย stressย include:ย
Communication breakdownย
A lack of, or breakdown in, communication is the most common cause of angst for all parties involved. Without effective and open communication from the start, the successionย is most likelyย destined for failure and maybe the courtroom.ย ย
Trust issuesย
It is not uncommon for parents to be uncertain aboutย handing over control of the company to the next generation. The so-called โsticky baton syndromeโ is not unique toย baby boomers, itโs something parents have struggled with throughout history.ย
Readinessย
Forย thoseย that have often spent their lifetime growingย aย business, the readiness of the future owners is a common concern. Change always brings with it an extra element of risk and that can be hard for many owners toย accept. In the same way, the children may also lack the confidence, or capability, to take the reins.ย ย
Sense of purposeย
Succession is not just a numbers game. For successful business families there isย usuallyย great emphasis placed onย the purpose of the enterprise and family legacy.ย
Parents often question whether the next generation will share theirย same values.ย
Steps to successย
Achieving a successful business transition takes into account these common concerns in setting a course for sustainable business growth that benefits all the relevant stakeholders.ย ย
The key is planning and communicating the right processes and tools for the next generation, so it doesnโt all implode.โฏย
Itโs a challenge for which families require experienced and objective assistance.ย
This can involveย external helpย with having difficult conversations with family members and preparing inexperiencedย childrenย for when their timeย comesย to manageย theย business andย inheritย wealth.ย
As such, more Australians are turning to Family Office structures.ย
A Family Office, or a Private Office as itโs sometimes referred to, is a family-owned and controlled structure that manages private wealth and other relevant family matters.ย
A Family Office can bring a more structured and disciplined approach to the management of succession and inter-generational wealth transfer.ย It does this by introducing a high level of family governance into the process of managing and administering wealth as well as coaching and education services to assist and prepare the next generation.ย ย
For the William Buckย Familyย Office team thisย usually involvesย a series of meetings with theย entire family, collectively and individually. During this process, weย
canย address the key issues and as we work through our programs, weย ensure we progress toward actionable solutions.ย
By thisย personalย approach, a family is in the best possible position to:ย
- Protect a lifetime of hard work with a successful transition to the next generationย
- Educate the next generationย on how to be responsible owners of family wealth as well as assets, andย
- Identify shared values, family goals, and define a clear purpose for the familyโs wealth.ย
To find out more visitย ourย Family Officeย service pageโฏorย contact us.ย
