It is often said in a family business that, a pre-planned and pre-accepted family succession planning can help to achieve the desires and objectives of the family. The most important focus should be to articulate the family's shared vision, values and enduring principals about how the family is organized around the business.
The dynamics of every family are different. The priority the family wishes to achieve is generally – role clarity in business, longevity, harmony. Many times family and business objectives overlap and proper succession and governance can help to co-create a solution that achieves the consensus and buy-in of the whole family.
Considering the number of businesses and family disputes happening, there is increasing awareness for succession planning for business assets and personal assets.
Before undertaking a business succession plan, it is also important for families to understand and answer the questions: What do they want to achieve? What is their priority? Do you want ownership of the business to remain in the family? What are the assets and where are the assets situated? Are the children capable and mature enough to handle the business? Are all the children in India or overseas? Do the children wish to handle family business?
Also, there cannot be progress on succession planning unless the family is willing to discuss the issue openly. Thus, it is essential to run an educational seminar on family business theory covering the unique features, challenges, and opportunities that family businesses around the world face, along with models and examples that are employed for dealing with these issues.
An early start to succession can help to make most of a family business. Business succession planning is an opportunity to solve tomorrow’s predictable problems today.
Amicorp Trustees (India) Private Limited, is building and deploying these protective trust structures. At ATIPL we concentrate on estate & succession planning services. Through estate planning, we can assist you to safeguard the interests of your loved ones and yourself by ring-fencing your assets, and protecting you from any possible re-introduction of estate duty, including distributing the same as per your wishes even after your demise.
We invite you to contact us for more details:
Tariq Aboobaker, Managing Director - t.aboobaker@amicorp.com
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