Overcoming Transition Conflicts: Is Selling the Only Way?
For most business owners, part of creating and operating a family business is to ensure that their loved ones will enjoy a comfortable lifestyle for generations to come. As much as you might want to remain in charge of daily business operations forever, there will comes a time when you must explore a transition strategy if you hope to keep your dream alive. Though everyone hopes for a smooth transition, what happens if conflicts arise?
Conflicts within Family Business Transition
Unfortunately, no matter what your intentions, there is always the possibility of conflict during the transition of a family business. One such problem can arise when you have multiple heirs that wish to take over and lead your business forward. Another issue might come from a third party who has been helping you operate your business and believes he or she should take over when you retire.
Regardless of what the situation might be, the first step to take when dealing with transition conflicts is to consult with a Boston business attorney. Speaking to someone familiar with business transition conflicts can go a long way to helping you ensure that everything runs as smoothly as possible. When you do this, you can develop the most detailed business transition plan to ensure that everything continues to operate even after you are gone.
There Are Always Options
Like any other challenge that arises during the lifetime of your business, there are always options when determining how to deal with transition conflicts. One of the best steps you can take is to meet with all of the affected parties and discuss these options. If you want one successor to take over, explain to everyone why you want him or her to be the major controller of the business. Or, for example, if you want to split the company into three shares, talk with all three parties and iron out the details together. When you open dialogue, you help ease people through the process and overcome many conflicts before they even occur.
Ultimately, the best way to deal with or avoid conflicts is to plan each detail of the transition thoroughly, for as many contingencies as possible. When it comes time to plan your family business transition strategy and you wish to seek out the best professional advisors to help with this process, contact Jeffrey Cymrot of Sassoon & Cymrot for individual guidance and consultation.