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Case Study: Scenario 1: 

A good news story!

A Family Business of 50 years is enjoying the benefits and reaping the rewards of a smooth transition as the next generation takes the reins.  

The founders, parents Mike and Mary, are stepping back confident that their early Succession Planning is paying off. Their legacy is embedded. A local Business, the brand remains family-owned, WA-based, providing locally crafted goods. And the next generation is passionate about keeping it that way. It is Business as usual for all concerned, staff, customers and suppliers. Everyone is a winner in this situation. 

Scenario 2: 

Same Business but there is no Succession Plan in place. Mike and Mary are ready to retire and handover to the next generation, son John and daughter Ruby. They are keen to takeover but have different views for the Business future. John wants to sell-up while the going is good. Ruby however, has other ideas. She wants to make dramatic changes, expand and try new things. Without formal Structures in place, in this situation, stepping back and handing over is fraught with problems for all concerned. Discontentment, sibling rivalry, indecision, and tension arise, leaving the Business and parties involved in disarray. There are no winners in this scenario. Worse-case, the Business dissolves and family relationships fail. 

Need advice. Contact Blackburn Accounting, your Family Business Specialist. We offer solutions to the following matters. Succession Planning, Financial structures, Strategic Planning, Resolving conflicts, Family remuneration, Retirement and Estate Planning.