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In the family Business, a panel beating shop, two brothers, Aaron and Michael already had a fractious relationship, that became toxic when Michael, the elder did all he could to alienate and push the younger out. Michael convinced his father he was the rightful one and best suited to take over the family Business, and that he did.  

Regrettably the father, Mr Brown had no formal structured governance plans in place to guide discussions. He hadn’t made any provision for himself in retirement or for the younger son’s future. This played out with a family breakdown, disconnected ties and bitter outcomes.  

This scenario highlights the importance of implementing effective Structures in a Family Business. A situation that could have been avoided if the Business had a formal body to govern, direct and protect all parties involved. 

Revisit the same scenario, in this example the Business has established a formal structure and is governed by a Board. Mr Brown, the father has arranged and secured a Succession Plan. These arrangements provide direction, clarity, and authority with provision for all. 

If you are setting up a new Business or if established, implementing the right structure is crucial.   

Need advice? contact Blackburn Accounting we can help develop what best suits your enterprise and lay down the foundations for success.