Transference of interests in family businesses is an inevitable path such businesses must cross. It is a challenging time for such businesses as family relations converge with business interests with the result that family members must strive to keep a balance on both fronts for the continued success of the family relations and business interests.
Proper advance planning is fundamental for the continued survival of any businessÂ – the particular circumstances of family businesses render this even more crucial and impelling.
Family members are encouraged to seek advice and to discuss with trusted professionals planning possibilities and re-structuring arrangements for the continued survival of a family business. Deferring such discussions and decisions can result in the risk that family members are unexpectedly faced with sudden contingencies for which they are not adequately prepared coupled with hasty decisions being taken – which are neither in the interests of the family as a unit, nor of the business as a going concern.
Proper planning is key.
Contributed by Annalise Micallef, B.A. LL.D, M.A. (Fin. Serv.), Dip Trib. Eccles. Melit.,TEP from Micallef & Associates Notaries Public & Estate Planners