For many family run businesses, succession isn't just about handing over the keys, it's about protecting a legacy. But without a clear plan, that handover can quickly become a source of tension, confusion or even conflict.

DWilkinson & Company has extensive knowledge and experience helping business owners prepare for the future. If you run an owner managed family business, here are the key steps we suggest you should take now to avoid problems later.

Start early and talk openly

One of the biggest risks we see with succession planning is delay. Many business owners put off having those difficult conversations because they feel uncomfortable or believe there's plenty of time to get things sorted. But succession isn't just about what happens when you retire; it's about building clarity and confidence now.

What to do:

  • Start discussing future roles and responsibilities while you're still actively involved.
  • Be honest with family members about your intentions and expectations.
  • Don't assume everyone knows your plan; write it down.

Clarify roles, responsibilities and ownership

Another common issue we help family businesses to overcome is a lack of clarity over who is doing what and who owns what. Not addressing this can lead to tension between working and non-working family members or disagreements about decision-making.

What to do:

  • Set out clear roles for each family member involved in the business.
  • Confirm how ownership will be split, especially if some family members won't be active in day-to-day operations.
  • Consider formal agreements or shareholders' agreements to prevent disputes down the line.

Separate family dynamics from business decisions

It's natural for emotions to be involved in a family business, but when it comes to planning for succession, you need to make clear-headed decisions that protect the future health of the business.

What to do:

  • Treat succession planning like any other major business strategy.
  • Consider involving a neutral adviser, such as DWilkinson&Company who can facilitate discussions objectively.
  • Keep family discussions and board-level decisions distinct where possible.

Get your paperwork in order

Even the best plans can fall apart if they're not legally supported. Without the right documents in place, your wishes may not be carried out or may be challenged.

What to do:

  • Make sure your will, business agreements, and powers of attorney are all up to date.
  • Check whether any trust arrangements are needed for tax or inheritance purposes.
  • Work with your accountant and, if appropriate, your solicitor to ensure your succession plan is watertight.

Bring in your advisers early

Don't wait until you're ready to step back before speaking to professionals. Accountants, like DWilkinson & Company, solicitors, and financial advisers can all help to guide the process and flag up risks you might not have considered.

What to do:

  • Contact DWilkinson & Company to help you assess the financial impact of succession, including any tax liabilities.
  • Speak to a solicitor about drawing up or updating legal agreements.
  • Consider involving a facilitator or coach if you think conversations might be challenging.

Build a business that can thrive without you

Finally, good succession planning isn't just about choosing a successor; it's about making sure the business can run smoothly once you step away.

What to do:

  • Document your key processes and systems.
  • Delegate decision-making gradually, so your successor gains confidence and experience.
  • Create a handover timeline and review it regularly.

In summary

Succession planning may feel daunting, but it doesn't need to be. With open communication, clear structures, and the right professional support, you can protect the future of your business and your family.

At DWilkinson & Company, we've worked with many family-run businesses through times of transition. We're here to help you put the right financial plans in place and work alongside your legal and advisory teams to make succession as smooth and successful as possible.

If succession is on your mind, get in touch. We'll help you take practical steps now that make all the difference later.