Family Business Succession Planning

Thomas D. Davidow & Associates provides comprehensive family business succession consulting for matters concerning the Ownership Succession and Non-family Management Succession.

We believe that succession planning in the family business context involves more than making the decision to continue the business into the next generation. Succession planning is a journey. Like any process, it takes time. Effective planning and implementation of changes in management from one generation to another require years to think through, years to plan, and years to implement. That is why we encourage the senior generation of any family business to begin planning as early as possible.

We also believe that it is not sufficient to provide only for the technical aspects of planning. If succession planning is left only to professional advisors without close attention to family dynamics, the family business will be placed at risk; and family relationships may be permanently damaged. It is essential, therefore, that family members understand the family's dynamics, including any underlying issues; and that they engage in an open and honest dialogue with each other. They are then much more likely to deal constructively with the many facets of succession planning, including the transference of ownership; the transference of management, power and control; the resolution of intergenerational conflicts; and adequate training and mentoring of the next generation. The reward of sustained and positive communication during succession planning is not only the continuity of family; it is also the survival of the family business.

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