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Strategies to secure a smooth succession plan
How does succession ensure that a business is run according to set values and procedures? Training is one of the ways to ensure that the standard is maintained. Photo/LIZ MUTHONI
Posted Monday, July 12 2010 at 00:00
Management buy-outs are used to ensure continuity of a business in the case of family businesses, by ensuring succession of the company is to named heirs.
In emerging economies most of the enterprises are family owned.
Management buy-outs in emerging economies are common to ensure continuity in business and to lock out competitors.
A management buy-out is just one of the more complex ways in which succession in a family business is carried out.
Other simpler methods like transfer of shareholding and nomination into partnership occur frequently.
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