Whether or not your clients map out a formal succession plan, the following list of questions can help you get them thinking about the critical issues they will face through the succession process.
Succession Issues
- How is the founder assured of lifelong financial security?
- How will the founder select the next generation of company leaders?
- How does the family handle conflicts between generations?
- How does the family handle sibling conflict?
Participation Issues
- How does the family decide who can join the family business?
- What if a family member chooses to leave the business?
- Are spouses encouraged to participate in the business?
- If so, what happens in the event of divorce?
Compensation & Ownership Issues
- How does the family evaluate and pay family members?
- How does the family reward non-family key employees?
- What benefits should the business provide?
- Who can own stock in the business?
- What returns do non-employees/shareholders expect?
