The majority of businesses in India are built with the view of creating wealth for generations, but the astonishing fact that the majority of them don’t have any process or mechanism for succession planning results in value loss when wealth transfer takes place. In our experience, the loss in wealth transfers happens due to –
- The business world is getting disrupted faster than ever, due to technology, generations gaps, global competition, and constant regulatory framework change
- next-generation family members may be reluctant, unprepared, or unable to lead, and might have the same instincts as founders requiring robust protection;
- family members and other stakeholders may not support the choice for successor leadership; and
- the business may not have enough liquidity to support the transition of ownership within the family.
Many succession problems can be avoided or mitigated if family businesses proactively plan for succession. Create a robust blueprint which includes collecting information, alignment through crucial conversation with stakeholders, context-based business valuations, business continuation planning, restructuring if required, decision matrix regarding the governing board, executive authority and beneficial ownership.
The foremost reason why most family businesses do not engage in proper succession planning is the limited understanding and capability with a conventional set of advisors to handle a holistically complex and multifunctional subject matter involving legal, tax, family business, facilitative conversation, and techn0 environmental understanding.
With the Inhouse expertise of lawyers, accountants and business experts we have been facilitating business continuity, HUF’s, trusts and frameworksof succession planning for the last 50 years, we approach this practice area as an entrepreneur and not just as a consultant, that’s what enables us to provide holistic solutions rather than one-off advice.