Alternatives to Bequeath a Family Business

Alternatives to bequeath a family business The young generation often does not have adequate preparation to lead the company, lacks the years of experience and often its vision of the company is different from their parents. Not to mention the fact that often the memory of the hard-working parents, forming their own company, are not encouraged to follow in their footsteps. It all makes the succession not an easy process. In the rush of current issues and daily decisions related to the functioning of the company, the question of succession is often overlooked or underestimated and constantly moved away for the future. According to the PriceWaterhouseCoopers report, as many as 50% small firms in developed countries, there is no succession. Moreover research among American companies shows that only 30% of small businesses survived the first generation change, while only 13% survived the second generation change. Only 25% of the companies in carrying out the succession, they use the assistance of external consultants. There is also very important thing which is lack of knowledge about issues of succession, postponing succession planning, in the belief that there is still time, and now there is no point to deal with it. There is also concern that the young generation has not been able to fully replace the existing owners and it will not be willing to do hard work and commitment, which may have negative consequences for the company. Meanwhile if the owner after retirement will not find a successor for the company, his or her business can lose family character or just be closed down. Regardless of the decision whether the company will be taken over management of the next generation, or it will be sold, you must plan the succession process. Without this it is impossible to avoid the turbulence associated with the imminent changes or effectively prevent the holding of the owners. Establish and implement a process of succession, like every other project that goes beyond our...