PROBLEM
My parents established a successful family business 15 years ago and have provided all the drive and motivation to grow it over the years. They are losing enthusiasm now and have expressed to myself and my two siblings that they are not sure whether to sell or pass the
business on to us. Would you have any advice on this?
SOLUTION
Simon Peacocke, a BDO Family Business Adviser, says the writer's parents face one of the most challenging issues in the life cycle of a family business operation - how to exit in a way that serves themselves, their family and the business. The parents must address two key issues. First, without doing anything, do they have the financial resources to enable them to retire and live the quality of life they have become accustomed to? Secondly, if they sell or transfer the business in succession, what roles, if any, will they play?
Then they can address the issue of whether to sell and/or work out an ownership and management succession plan.
