A succession without a break!

Succession in family-owned companies as possible. But you can — and should — be avoided, it is on the break of the conflict, and the write-down.

In many cases, of the founder remains in the command, up to the limit of their capacity, putting off difficult conversations, and leaving it to heirs unprepared. What was the result? Corporate disputes, falls in revenue and up to the end of the business.

In this article, we are going to show you how a series of well planned project is the continuation — and not a single act. And, just as important, how it has to do with the structure, timing, and chat.

• The myth of the succession to the natural: why to wait for the “right time” can be a costly proposition.

The idea is that the succession will take place in a natural way, in a future that is convenient, it is one of the biggest mistakes in the planning stage. You leave to go take care of it only when the founder is no longer capable of managing the business, is often a result of conflict and disorganization, which could culminate in a major crisis, and to-be for the end of the company. In addition to this, the lack of pre-planning lets your heirs are ill-prepared to make strategic and operational decisions. Companies that do not anticipate the succession, at the risk of losing their competitive edge, and even see your equity is diluted.

• Succession planning is a strategy for security, continuity and heritage.

It is common to relate to planning for succession and only to the transfer of the goods to the alleged shielding property. However, the fact is that there is no real armor solutions. The value of this kind of organization, you are on your strategy to protect your business as a legacy, to ensure the continuity of the management of the business, and reduce the potential for conflict between the heirs.

The estate planning allows you to anticipate the decisions, which, if it were left up to the time of the succession, and may result in the court, they are to business, or to the dissolution of the society. To organize on the way to the stockholders and to the control of the company shall be transmitted to the owner to ensure greater stability and certainty for the future of the family and the business in accordance with his wishes, and that it is feasible to do so in the context of the family.

To this end, several tools may be used — such as for wills, the creation of a board to the inside of the company to decide on a specific topic, and their money with the provisions of specific agreements, the partners are still in the light of the reality of the family home, and the size of the company. The formation of a holding company which, in this context, it is one of the possible ways in which the center and arrange for the goods and the holding company, in promoting the governance of, and to facilitate the transition between the generations when properly structured, and is aligned with the goals and objectives of succession.

The most important thing is to understand that your estate planning is, first of all, as a measure of protection and durability. It’s not just to avoid conflicts, but also to promote legal certainty and clarity, organization, and balance sheet for a management model, which is aligned with the long-term vision of the family business, and the operation itself.

• The role of the heir of the managers, professionals,

It is not uncommon for societies to cope with the conflicts that are related to the role of the heir to the managers and professionals. It is not always the heirs of the founding fathers have in the profile, and the preparation of or even interest in taking over the leadership of the business.

In this scenario, it is essential to clearly define the roles and responsibilities of each party, including the possibility of bringing in outside professionals in the management of the company.

Corporate governance exerts a key role in this process, and to align the interests of promoting the integration between the generations and to ensure the longevity of the organization. The creation of the consultative council or administrative procedures, with the participation of the members in the independent, for example, may be an effective strategy in order to balance tradition and innovation.

In addition to this, the use of the decision-making process is well-defined, and mechanisms to ensure transparency and contributes to the reduction of the inner conflict, and building an organizational culture oriented to the continuation and sustainability of the family business.

• Checklist: is your business ready to succeed?

– There is an estate planning arranged?

The heirs are ready and able to take on strategic roles?

– There are protocols, and agreements between partners of well-defined?

Your articles are well-structured disputes in ownership, and inheritance?

The tax planning that is aligned with your estate planning?

The corporate governance committee is established and is in operation?

A succession without a break is a project that needs planning, communication, and design. When you take a strategic approach and is organised, it is possible to ensure that the change-of-hands is smooth, while preserving the heritage and legacy of the company for generations to come.

Sources:

RAMOS, Andre Luiz Santa Cruz. Business law: volume is only. 11. ed. São Paulo: Saraiva, 2022.

VELLOSO she is Pitten; GRISCI Carmen Ligia Iochins. Corporate governance, family business, in the process of inheritance: the view of the consultants, and for the families in business. Management Magazine, São Paulo, v. 22, n ° 1, p. 72-88, 2015. Available at: https://www.redalyc.org/articulo.oa?id=337232942008. Available at: [accessed 31 mar. The year 2025.

BRAZILIAN. Civil Code,. the Law nº 10.406, de 10 de janeiro de 2002. On the Civil Code,. the Official Gazette of the Union,section 1, Brasília, DF, brazil, p. 1, 11 jan. 2002. Available at: https://www.planalto.gov.br/ccivil_03/leis/2002/L10406.htm. Available at: [accessed 31 mar. The year 2025.

In BRAZIL. , Law no. 6,404, of December 15, 1976,. on the company’s Shares in. the Official Gazette of the Union,section 1, Brasília, DF, brazil, p. 1, 17 dec. 1976. Available at: https://www.planalto.gov.br/ccivil_03/leis/l6404consol.htm. Available at: [accessed 31 mar. The year 2025.

Barbara Rita Escapin – a Lawyer with a degree in Law from the faculty of Integrated River in the White Foundation members in São Paulo, enrolled with the Brazilian bar association, São Paulo (OAB/SP) (2019). The training on Executive Education/the Compliance by Fundação Getúlio Vargas (2022). A post-graduate degree in Corporate Law from Fundação Getúlio Vargas. She is the author of the articles. A lawyer and a Leader of the TM is Associated with it.

Carolina Cotrin de Oliveira, a Lawyer with a degree in Law from Pontifícia Universidade Católica de Campinas (PUCCAMP). A post-graduate degree in international Law from Universidade Presbiteriana Mackenzie, brazil. Registered at the Ordem dos Advogados do Brasil, São Paulo (OAB/SP) (2019). She is the author of the articles. A lawyer for the Department, the Advisory does have Associated with it.

Tidbits: https://www.migalhas.com.br/depeso/427683/sucessao-sem-ruptura