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Succession planning that is fit for purpose remains a real challenge for many family businesses, writes Frank O’Neill, EY Private Family Business Lead

Family businesses are entrepreneurial at their heart and many are multi-generational – they evolve, adapt and continue to transform time and time again. At EY we support and advise some of the most ambitious indigenous and global family businesses.

Globally, we are currently advising 80% of the world’s top 500 family businesses across the globe – bringing our global expertise and local footprint and understanding to the forefront of everything we do with our clients.

By the year 2030, more than $15 trillion in wealth will be transitioned from one generation to the next. While planning does not always guarantee success, a lack thereof can result in an exit rather than a succession or, indeed, the family might encounter obstacles for which it is unprepared for, including unwanted cost and tax burdens.

EY’s recent CEO Imperative Study found that 81% of Irish CEOs say their organisation will start a new and comprehensive transformation initiative this year. This includes the CEOs of family businesses and their plans for succession or exit. Transformations are both challenging and exciting times for the next generation of family business leaders.

As family businesses continue to navigate an extremely volatile trading environment, these leaders have a real opportunity to step up and help their businesses to innovate and reframe their futures

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The next generation doesn’t automatically mean the son or daughter – current leadership in the business should also be considered. Putting a business succession plan in place not only allows an individual to pass on their assets in the most tax-efficient manner but also helps identify any potential fractures which might appear within the family and of course, the leadership team.

There is no quick or easy way for the next generation to find their place in a family business. They are likely to be more successful in their quest, however, if they have the support of a network of friends, peers, mentors and professional advisors. With this support, they can become drivers of change and innovation, who will ensure the continued success of their family business over many more years to come.

EY has carried out a number of webinars which focus on family businesses and the key decisions and pre-planning required to support the successful survival of the business for generations to come. To find out more on how EY support Family Businesses, visit www.ey.com/ie/private