Once in a lifetime

Successfully handing the reins to the next generation

While selling the company will be attractive to some owners and founders, many will want to pass the torch to the next generation. According to our 2023 Family Business Survey, 53% of respondents are looking to ensure the business stays in the family.

However, good succession planning often means balancing business with emotions given the complex family dynamics at play. It’s important to bring the whole family together to align on a shared vision, values and purpose so you can build a strong foundation for ensuring mutual success.

As with selling your business, it’s important to start the succession process early, usually a minimum of three years in advance of the transition to address the various issues that can arise.

Key considerations for succession planning

1. Giving everyone a voice but not necessarily a vote
2. Thinking about your long-term legacy
3. Preparing the next generation
4. Listening to the changing needs of the next generation
5. Addressing traditional challenges

1. Giving everyone a voice but not necessarily a vote

Current owners need to listen seriously to the goals and aspirations of their successors. While hearing from all family members is important, having a voice doesn’t necessarily mean someone has a vote on company matters.

5. Addressing traditional challenges

Clarify the level of involvement of the founder after handing over the reins and how much control they’re willing to give up.
Ensure the next generation is ready to step up by honing their business skills away from the family company and respecting the knowledge and experience of current leaders.

We understand the unique challenges of family businesses. We combine our deep insights into family dynamics with technology-enabled solutions to help you navigate this once-in-a-lifetime opportunity.

Once in a lifetime

Navigating towards a successful sale of your family business

Related content

Family business services

A successful family business are those with a good balance between professional management, responsible business ownership. Build lasting value with PwC.

The importance of Corporate Governance - Family Business

At the end of last year, I had the pleasure of presenting the FBUK Governance Masterclass, in conjunction with Boodle Hatfield, to a diverse group of family businesses. Whilst every family business is different in its ownership structure, maturity and the specific needs of the sector in which it operates, there was a consistent appreciation amongst the businesses represented in the room of the importance of establishing effective governance.

Global Family Office Deals - UK trends

How important is the global deals market to UK Family Offices? We look into our 2023 Global Family Office Deal Study and find out.

Deals

At PwC, we work with organisations who want to realise maximum value at every stage of their deal lifecycle. M&A advisory, business restructuring, value creation, forensics & more.

Contact us

Emma Suchland

Regional Market Lead for the North, PwC United Kingdom

Tel: +44 (0)7702 842499

Tim Armstrong

Partner, Corporate Finance - Head of Private Business, PwC United Kingdom

Tel: +44 (0)7763 383782