Succession planning and business transfer

Transferring ownership and control of your business to a family member might not be possible or feasible.

After careful consideration you might conclude that a non-family member - a current director or employee, someone who knows the business and is committed - is best placed to take the business forward.

If such a person does not exist, you might be forced to bring someone in from the outside. Be careful. Such an appointment can cause resentment. To minimise the risk of problems arising, communicate the reasons for their appointment to your staff and make it clear that it's in the best interests of the business.

Trust is the major issue if control of your business is given to an external person. You will need to be sure about their skills and experience because the person you choose should have what it takes. As well as knowledge of your firm and type of business, they will need the necessary leadership skills and personality to motivate and manage others within your business. They should share a similar set of values that will act as a guide to how they run the business. You will also need to be sure of their commitment.