Talking is key to planning for succession

Advisers encourage farming families to p lan fo r succession, with varying degrees of success. The problems can be obv ious . The o lder generation may not feel ready to relinquish control or reduce their input.

As much as adult children coming through may want their parents to start taking it easier as the years roll on, the parents may have no desire to do anything differently just yet. An enforced retirement is rarely a happy one.

Fresh blood and new ideas are usually good for a business, as very f ew entities stay the same decade after decade without adapting to the changing environment.

New ideas can only work well if they have buy-in from everyone who will be affected, rather than imposed by the individual whose idea it is – that means getting the different generations on board.

Once the topic of succession is out there and conversations begin, many families find that they are all on the same page and a course of action can quickly and easily be agreed.

This may be as simple as g iv ing the younger generation some new responsibilities, which could be low-key initially.

There may be an agreed timescale or methodology to transfer knowledge and responsibilities so that the younger generation has the confidence and incentive to learn and grow with the comfort of knowing the more experienced head is still there alongside.

The transfer of assets between the generations does not have to happen at the same time as the transfer of responsibilities, so it is important to have early clarity on what is at s t a ke , w h at the older generation is, or is not, prepared to pass on and what it is the younger generation are seeking.

There is a big difference between wanting input into or control of business decisions and wanting control of family wealth or assets. While the two can go hand- in- hand, the y don’t always have to do so.

Where there are differences in the vision for the future, or how quickly to get there, don’ t let disagreements bring a halt to the conversations.

Can a compromise be reached, or can a mediator facilitate a way to reach common ground?

CHANGES: Fresh blood and new ideas are usually good for a business.