Business owners often struggle with the question of whether they should transition their business to their children or whether they should sell to a third party.

To help find the answer to this, we need to go back to one of the first principles of succession planning: in order for a succession plan to be successful, it must balance the needs and goals of both family and business. While 3 most common options exist, the first consideration should be to maintain ownership within the family by opting for a family transition.

The main characteristics of a family transition include a traditional succession where the business is passed down from one generation to another allowing the family to retain ownership, which can allow the family legacy to continue on, whether that be in the original business or through an Intrapreneurial initiative.

Regarding common reflections of a family transition, it is not uncommon that family owners wish to keep the business in the family, yet often don’t properly weigh how their personal and financial circumstances align with this desire. Additionally, issues around family harmony must be addressed and communicate as they can sometimes impede the transition process.

Naturally, a family transition should begin with the family. Family meetings are a good forum to discuss not just the future ownership of the family business, but every other important aspect that concerns both family and business is a good start. Openly discuss conflicting goals that may exist to ensure any decision made will balance the needs of the family to that of the business.