When the time comes for the older generation to step aside and let the younger generation take over, a number of questions always arise. In many cases, a family’s entire fortune is invested in the company.
In cases of generation change, fairness is always the key issue. The company’s continued survival & financial support for the older generation is paramount. However there are many pitfalls and traps. Passive and active part-owners often have different objectives and, in many cases, difficulties in cooperating effectively with each other. There are several issues that need to be resolved. They might concern provisions for pensions, or other questions such as the older generation retaining a share of ownership; or whether they should be offered positions of employment within the company.
We have extensive experience of dealing with generation succession and can help to find a solution that suits each company’s specific needs.