‘Business succession planning now more crucial’

DUBAI: An estimated $1 trillion worth of assets will be transferred to the next generation of family owned companies in the Middle East over the next decade.

Proper business succession plans could ensure the protection of personal wealth and corporate assets under challenging circumstances.

Business succession planning has now become more crucial with the new Ultimate Beneficiary Owner ( UBO) regulation ( UAE Cabinet Decision No. (58) of 2020 Regulating Beneficial Owner Procedures) that requires companies to declare the ultimate beneficiary of business transactions, shareholder and voting information. The regulation, which came into effect on October 27 this year, seeks greater transparency on the real beneficiaries of the businesses.

“Business owners now need business succession more than ever to ensure their financial assets and wealth are protected in case of death or disability,” Leena Parwani, Founder and Chief Executive Officer of LPH Financial Services, says.

“A business owner spends all his life developing business, generating assets and wealth. However, he doesn’t do anything to protect the wealth and the interests of his family, successors. This is normal among most business owners.

“However, it is important for the business owner to ensure that his/her successors gain access and control of his assets in the businesses, or a fair value of the shares if they want to exit the business.”

She urges the businessmen to protect their estates, wealth, assets and business interest against growing risks.”