A succession plan refers to the process of passing on ownership or leadership of a firm to the next generation or a person. In my family firm, the present Managing Directors intend to pass on their titles to their respective sons, as is customary in Indian families. Significant difficulties would be developed with the employees and other members of the family business over how the new decisions in the company will be made. Other family members may also be concerned about their position in the company. Apart from that, the entitled sons may be overconfident in their decisions because they lack decision-making expertise in a 25-year-old company.
top of page
Family Business Labs
"The Successor's Paradox"
bottom of page