Many family business owners find themselves too involved in their business to consider long-term planning. Failure to address this can, at best, create stagnation and uncertainty both within the family and the business, and at worst, lead to business failure, family disharmony or splits, or a windfall for the Chancellor.

The starting point must be to look dispassionately at why you are currently involved in the business, its historical context, its strengths and weaknesses, your reasons for carrying on, and the interaction between your family and the business.

You will also need to examine your hopes for your family and the business in the long-term.

This process may lead to a conclusion that your long term strategy should be to sell the business. Alternatively, it may be that you reach a conclusion that the business can be passed down a generation.

The challenges you will face when implementing your strategy will depend very much upon the make-up of your family, and the structure of ownership of the business.

A first generation family business will typically have ownership concentrated in the hands of one or two family members. Decisions can, in theory, be reached and implemented relatively easily, although in practice, there will be difficult issues to deal with.

By the time a business has been passed down through one or two generations, the issues become more complicated, and transitional stages become crucial to the success of long term strategies.

Meeting the challenges inevitably involves a process of consultation in the development and implementation of the strategy. Not all family members with an interest may be willing to take part, and very often, there will be competing interests to be resolved.

What is essential is that advice and assistance is sought at an early stage, including the preparation of contingency plans to cater for the unexpected.

These can involve reviewing existing partnership or shareholders agreements, or preparing them if not already in place; ensuring that wills are tax-efficient and deal appropriately with business assets; and the preparation of Enduring Powers of Attorney to cater for debilitating accident or illness.

At Charles Lucas and Marshall we have solicitors who have completed specialised training in advising family businesses. We also have in depth technical expertise and experience in all matters relating to the on-going running and sale of businesses, as well as estate and tax planning for families.

For more information contact Michael Overend on 01488 682506 or michael.overend@clmlaw.co.uk