In any proposal to transfer the family business to the next generation there are a number of key issues which need to be decided. 

1. Are your children suitable to manage the business? 

Are the children interested in taking on the family business? 

Are they ready to? 

Can your children afford to buy the business? 

 33% of business survive to the second generation. 15% make it to the third generation 

2. What about your own retirement plans? 

Do you require a source of income on retirement? 

Do you want to gift the business or sell at a discount or fair market value? 

Do you want to retain an interest in the business? 

3. Are there interested third parties? 

Is this a good time to sell the business? 

What does the future hold for the industry sector? 

Sometimes a third party sale is best way to protect wealth. 

4. Are there company assets you wish to retain? 

Do you hold any personal assets within the company which you want to retain? 

Do you want to split trading assets from investment assets? 

These questions are key matters which need to be addressed at the planning stage and will determine the ultimate structure employed to pass the family business on to the next generation. Above all planning is vital to avoid future inter-generational conflict and the importance of a properly drafted shareholders agreement to govern the future relationship between the parties.