Family Business: the emotive conundrum, do you grow, hand down or exit your family business?
When running a family business all aspects of growth and exit strategies still apply. However, exit strategies can, especially in longstanding generational family businesses, be emotive.
Growing your family business
Are you looking to take your business to the next level?
There often comes a point when family business owners want to start growing their business through either:
- Mergers and acquisitions - purchasing another company or a company's assets to secure a larger market share, revenue and a more dominant position in the market
- Partnerships - perhaps with distributers, dealerships or suppliers or someone that has other capabilities which you do not have that can extend your network
Court decision provides a mechanism for business continuity following the death of Sole Shareholder-Directors
The High Court has granted an exceptional order pursuant to section 125 of the Companies Act 2006 for rectification of a company's register of members, to replace a deceased member with the executor named in her will prior to obtaining a grant of probate.
In many companies, an individual may act as both director and shareholder. In such circumstances the company's power to make decisions relies solely on that individual and consequently the company is left in a vulnerable position following the death of the individual.