Succession is rarely one decision. It is a series of choices about ownership, management and the family, made over several years. There is no single right answer, and the options are worth understanding before any one is chosen.
The main options
Pass ownership to the next generation, with or without them running the business
Bring in professional managers while the family keeps ownership
Sell to the management team, usually with outside finance
Sell a minority stake to a family office or investor to release some value and bring in a partner
Sell the whole business to a trade buyer or private equity
Transfer to an employee ownership trust
Questions worth asking first
What do the owners want for themselves, the family and the staff?
Does anyone in the next generation want to run the business?
What would the business need to stand on its own without its current leaders?
How does tax affect each option, now and on death?
Keep the options open
The owners who do best are those who prepare the business so that every option remains available, and decide later.
For a general conversation, with no route assumed, call James Innes on 020 7850 4760 or email james.innes@chrystalcapital.com.
This article is general information and is not advice.