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 | Question: |
 | Answer: Although you may have a huge amount of emotional capital invested in the business and wish to see it continued by your children, it may be self-defeating to force a family succession if the right circumstances do not exist. As you have made an honest assessment of the situation and conclude that there is little chance of a successful management transition to the next generation, you should begin to look at the possibility of selling your business. Once the sale of a family Business was considered to be a failure, but it is simply another form of success. A family that has rejected the options of succession must form an alternative method of retaining the family's wealth, translating it into a different, more portable form. The decision to sell is not an easy one to take - but if faced honestly and openly, it will become less painful, whatever the outcome. Many entrepreneurs who have then found themselves in far more secure positions. Where they have remained involved in the company in an executive role, their business decisions have improved because they no longer face the conflicts of family or emotional issues. You should plan early, as it is impossible to specify a date for the sale of your business. It is also important to feel that you control the process and are not afraid to use your subjective judgement to identify whether the outcome is what you want. For this reason, an adviser is essential in the sale of your business, but make sure open communication is their absolute priority. The sale should effectively come second on your agenda. If you continue to run the business as though your family will own it for a thousand years, your eye will remain firmly on the ball. |
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