One of the biggest challenges associated with this process is the difficulty that the current owners have in letting go of their business.
Letting go is difficult for all owners and even more so for founders; however, in a family business the additional challenge presented by the family component increases the complexity of this process.
Fortunately, by using the Guiding Principles endorsed by the family, the following ownership issues can be dealt with in a more effective manner.
Ownership Succession Issues:
- Timing of the ownership transition including partial ownership transfers
- Who can own shares in the family business and what is it based on ?
- Spousal and in-law expectations with respect to ownership
- Funding of ownership transition
- Pre-determined exit strategies
Family business rules/guidelines can be implemented to allow the current owner to efficiently complete the ownership succession while managing the family component.