The business landscape is full of Family Owned Businesses many of whom have never actually considered issues related to succession planning, strategic planning or exit strategies. Succession planning ensures that businesses continue to run smoothly after the business’s most important people move on to new opportunities, retire or pass away.
Our team has helped several businesses, locally and internationally, to navigate the succession planning process.
Our comprehensive succession planning approach not only develops an outline for a Family Constitution & Shareholders’ Agreement but also develops a full plan for & provides Coaching & Mentoring services to the key personnel of that organization.
Our parallel approach combines succession planning with strategic planning to provide you with a strategic road map for a successful and sustainable business and a harmonious family.
We also help you address issues relating to Estate Planning.
As part of our work, will guide and assist your legal team to develop the necessary legal documentation such as Shareholders’ Agreements and Wills.
We have the experience of working with a range of leading companies to help them navigate the succession process. We have worked on projects not only pertaining to Succession Planning but also tackled issues most commonly associated with Family Business e.g. Corporate Governance, Financial Strategies and Strategic Planning, to name a few.
The succession process is often difficult to deal with as it involves a myriad of family issues as well as a number of business issues. During the process there may be tough decisions to be made. It is important that process is handled with care, diplomacy and by people who have a diverse range of experience in handling such matters. This helps in keeping the family harmony during and after the process is completed.
Our typical Succession Planning Process entails the following deliverables:
1. Family Constitution
The Family Constitution (also known as a family charter or family protocol) is a written statement that serves as a record of the family’s heritage, culture, hopes and ambitions for future success, as well as a plan for how to achieve them. At its core will be the mission statement for the family
and their clearly stated hopes and aspirations for the current and future generations.
The main aspects of the constitution include:
- Documentation of Family Values and Beliefs
- Bill of Rights for Family Members
- Bill of Responsibilities of the family members
- Entry into family business
- Exit from the family business
- Right to receive dividends
- Succession related issues
- Resolution of family disputes
2. Outline of Shareholders Agreement
The key terms and conditions considered in the agreement include:
- Roles and Responsibilities
- Decision Making Process
- Remuneration Arrangement
- Exit/Entry into the business
Transfer of Shareholding
- Death/Incapacity of Shareholders
- Appointment of Directors from the various families
- Dividend Policies
- Restraint of trade
- Voluntary Exit
3. Strategic Report
The report would cover such areas as:
- An assessment of SWOT
- Financial Analysis
- Overview of policies and procedures
- Analysis of organisational structure, roles and responsibilities of key team members
- Assessment of governance framework
4. Coaching & Mentoring Services
A detailed plan is developed for all the key personnel with particular emphasis on the younger generation following an assessment of their current skills and expertise
5. Wills for the family members
A well prepared will that takes account of your various operating structures such as companies, trusts and superannuation is critical to ensure that your assets are transferred to the beneficiaries in the most effective way.