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z business


Far left; Oliver Gravell; above Rachel McKillop- Wilkin;, left, Catriona


Galloway and right; Matthew Potter with the head of Birketts’ family owned business group James Austin


“Identify the assets you hold and who owns them. The latter may not be as clear cut as you think.”


bitter fights and quarrels can draw divisive lines. And because family members are involved, conflict can be difficult to solve. Recognising that different members of the family may need to be rewarded differently depending on their roles can cause friction. There can also be a reluctance to change working practices, because ‘that’s how it was done in my day.’ Some family businesses are reluctant to recognise that outsiders are needed as a catalyst for change or that the chosen successor does not have the right skills. This can result in senior roles going to people who lack the skills, education, or experience needed. Finally, some family firms lack succession plans, because the person at the head of the firm can't admit that they will, one day, need to step down. Such planning takes time but is often left too late.


What key steps would you advise a family business to take? 1) Identify the assets you hold and who owns them. The latter may not be as clear cut as you think.


2) Get a business structure in place that is right for you. 3) Succession planning - have you identified a successor? 4) Communicate - talking through plans or any changes to the business with the wider family is vital. As an added precaution in succession planning, pre-nups and post-nups should form part of the strategy of anyone in a family owned business where the preservation of the business assets is important both for current and future generations. When a marriage breaks down both parties have to provide full and frank disclosure of their assets. If they have an interest in a family business this puts that interest ‘in play’ in the negotiations. Courts have the power to make orders against shares in a company - including to sell or transfer shares. A court ultimately will consider all options open to it in order to satisfy the claims of each spouse, to ensure they have enough to meet their needs going forwards. Says Oliver: “I know of one divorce between two people


who worked side-by-side. Whilst continuing to work side-by-side they agreed on terms, parted and moved on. Of course, that sort of almost clinical separation is rare.”


How does a professional adviser help? A family business needs advice on the key strategic decisions relating to growth and succession but also in relation to its workforce and day-to-day operations. Birketts has been working with family businesses for over 150 years, managing the legal affairs and interests of the business and the private client from offices in Cambridge, Chelmsford, Ipswich and Norwich. “Our offering to family businesses extends beyond that of the traditional private client relationship with the business owner”, explains James Austin. “We steer the business through issues such as health and safety and regulation, brand protection, property disputes and debt


recovery.” n For more information www.birketts.co.uk/familybiz


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