It’s a family affair – let’s keep it that way
Press release
10 July 2012
THE traditional values and client centric ethos of family business is under threat because they are failing to plan for the future.
Family businesses are a vital part of the UK economy, bringing in a quarter of the UK’s annual GDP and providing 9.2million jobs. Yet family business solicitors are warning that the legacy of family businesses is in danger due to a lack of succession planning.
Specialist business legal advisors, MLP Solicitors, have found many family owned and managed businesses are not prepared for protecting the business in future generations.
Family business solicitor, Stephen Attree, said: “The success behind Britain’s family businesses is the ethos and culture they have created. They attract customers because they are founded on the dynamics of love and respect.
“For SMEs and family businesses to survive this unique culture needs to be protected. We’re helping owners to recognise how strategic planning now will safeguard their business legacy for years to come.”
Stephen shares his top four succession planning tips for making a success of a family firm now and in the future:
1. Planning and phasing If you are preparing to exit your family business don’t just say you’re going to do it – create a clear exit and succession strategy and timeline outlining when you’re going to leave, what needs to happen before this and how the business will move forward. Share this with the whole business and start phasing yourself out of the everyday working life of the firm so it’s not a shock when you leave.
2. Identify and protect your culture What makes your business stand out amongst your competitors? Once you have identified your unique culture make it an official part of your business plan – develop vision and values which will help direct business plans in the future. A family charter, or constitution, which defines the vision, mission and values of the business, and family, is a vital tool to secure the legacy of the business and family harmony.
3. Provide clear roles All family members and staff need to be ‘singing from the same hymn sheet’ when it comes to what the company is all about and the vision for the future. Don’t just spend time developing the next leader, invest time and training into all family members so everyone is clear of the role they play in the business success.
4. Keep it all ‘above board’ In the end this is a commercial transaction and not a family one – protect the business from any disagreements by approaching the handing down of a family business as a professional and commercial transaction – not an informal agreement within the family. This means all parties know and have agreed in advance how it will work.
Stephen Attree, Partner at MLP Solicitors is a qualified Family Enterprise adviser. MLP Solicitors is based in Altrincham and specialises in corporate and commercial legal advice to businesses and business owners across the North West.
For more information contact Stephen Attree on 0161 926 9969 or visit www.mlpsolicitors.co.uk
-ends-
(Extended feature article version of this press release is available.)
For more information, or to set up an interview with Stephen Attree, please contact Lucy Oates or Dan Gledhill at RMS.
Telephone: 0161 927 3131
Email: lucy@rmspr.co.uk or dan@rmspr.co.uk
