Simplifying succession planning with practical steps

The 2025 family business survey found that 63 per cent of family businesses are already mentoring rising generation family members; 60 per cent are gradually integrating the rising generation into decision‑making and 31 per cent are engaging external advisors to support development.

Despite this encouraging activity, only 19 per cent have a documented succession plan in place. 

While families are making meaningful progress in preparing the next generation, many lack a formalised plan and that’s common. Families often hesitate to document succession because:

• it feels complex or burdensome
• family dynamics make decisions harder to capture on paper
• it’s difficult to know what to include or how to begin.

However, documentation isn’t just about paperwork. It’s about creating clarity, transparency and alignment. It turns intentions into practical actions that safeguard both the family and the business.

Practical steps to simplify and start the process

1. Start with conversations, not contracts
Bring succession into your regular discussions by aligning on vision, values and long‑term goals. If raising the topic is sensitive, an external advisor can provide structure and neutrality, so everyone feels heard and understood.

2. Define the big picture
Agree on long‑term priorities. This can include discussions around whether the business will remain family‑owned, expand or diversify. Begin to outline governance structures, such as a family council or advisory board.

3. Break it down into manageable pieces

• Leadership and governance: Who leads? How will decisions be made?
• Ownership: How and when will ownership shift?
• Financial and tax considerations such as estate planning, liquidity, tax implications.
• Contingency plans: What happens if unexpected events occur?

4. Document in writing and keep it simple
Start with a high‑level Family Charter or Succession Roadmap before moving into legal documents. Focus on clarity with objectives, timelines, accountabilities, and role descriptions in plain language. External advisors can help you structure this framework, so it becomes the foundation for future planning.

5. Engage advisors early
Legal, financial and tax specialists ensure plans are robust and compliant. Advisors bring objectivity and help families navigate emotional or complex decisions.

6. Make it a living document
Treat succession planning as an evolving strategy rather than a one‑off task. Review it every two or three years or when major family or business changes arise.

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Family Business Report 2025

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Entry points for family businesses

• Start with a guided conversation: We can facilitate early discussions to surface priorities, concerns and opportunities.
• Build your governance foundation: We help families draft charters, set up councils, and establish governance processes.
• Begin with a light‑touch roadmap: We can shape a simple, practical starting document that grows with your business.
• Use facilitated planning sessions: These create momentum, accountability and shared commitment across generations.

We’re here to help your family business

Involving external advisors takes pressure off the family and helps move conversations forward constructively. For families thinking long‑term, partnering with advisors early in the process is an essential step toward a smooth, confident and well‑governed transition. If you’d like to discuss any of the above, please reach out to our team of experts today.

^{Article contributed to by Priscilla Ly – Private Enterprise} 

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