When it comes to making a decision to take over a family business, there’s always a lot to think about. There can be pressure from parents, sibling rivalry (as seen in the TV show ), unrealistic expectations to turn the business and its fortunes around, not to mention apprehension about whether one is actually cut out for the job in the first place. , tells , ‘One of the biggest obstacles is actually the older generation refusing to step back, particularly if it’s an entrepreneurial business, i.e. first generation and the business is their ‘baby’. They may have good intentions, but actually relinquishing control can be too much.’ Birtwistle also talks of the challenges within cultural differences. ‘The ‘stiff upper lip’ English families still struggle to have open conversations about money, family engagement etc. I’ve seen the next generation not talk about their ambitions to work in the business as they worry about being rude and presumptuous with their parents. Likewise parents don’t want to put pressure on their children to be involved in the business so they decide the best thing to do is not talk about family roles at all. The lack of communication between both generations means there are mismanaged expectations around next-gen involvement.’ says a lot of the obstacles his clients face comes down to ability and ego. ‘Quite simply, does the son or daughter have the ability to succeed or is it their ego, or that of the founder, that is spurring them on?’ Graham adds: ‘The shareholders of the business, whether public or private, should always look to put in place the person best qualified to lead the business. The flip side can also be that even when a son or daughter is well qualified to take on the role, do they have the support of other family members who are shareholders in the business which can be made effective though a well prepared legal structure.' Even if they have the skillset and the support from shareholders, there are often times when individuals have no desire to have a major role in the business. And that's OK. tells , ‘With a proper governance framework in place, it is common that later generations may not need to be involved in the day to day operating business and pursue other career paths. The family representatives may instead sit as members of a higher group board that considers long term strategy and asset diversification. It is often the case that the founder generation is on 'the factory floor' with future generations more involved in capital allocation and the governance of the operating businesses.’ Bailey adds: ‘If family members do not wish to be involved in the governance at all, then trusts can offer a very helpful structure. In this scenario the trustees will hold the shares in the business for the family and must act in the family's best interests. In large multi-generational business families a 'talent academy' will be developed alongside a family constitution to identify which family can or should work in the business and what qualification or external experience is required.’ The experts emphasise that family members should respect an individual’s decisions, especially if they are hesitant to take the hot seat. 'We often see next gen who are reluctant to take on a leading (or any) role in a family business needing time and understanding to see how they can bring their talents to the business rather than just stepping into the big shoes of a parent or relative,’ says Ronald Graham. ‘We encourage families to allow children to study and gain experience of business in other corporate spheres to learn new skills and hopefully understand that they can bring their abilities back to the family business and take it forward. The worst thing a family business can do is to force a child into a role they do not want to do, however great their abilities are. An inexperienced person may be a quick learner but someone who does not want to be there at all will rarely bring success or happiness to a family business,’ says Ronald Graham. Of course, communication can be key and this openness should be encouraged from an early age. ‘Many families hold back from initiating and continuing key conversations’, says . He adds: ‘Sometimes this is influenced by a natural desire to ‘see how individuals develop’, sometimes it is influenced by an equally natural desire to retain control and dictate outcomes. As ever, there is a balance to be struck depending on the needs of the business and the characters involved, and there is no ‘one size fits all’. It is absolutely fine for a discussion to result in ‘let’s do nothing for the moment’ but, whether that is a founders’ discussion with their advisers or the outcome of a family council, it is best to do that as part of an informed process – otherwise, the only people who benefit are lawyers.’ ‘Preparing the next generation is a real concern for families,’ says Birtwistle. ‘Indeed, in our last , one of the top replies to the question ‘what are the five things keeping you up at night?’ wasn't financial; it was parents' worry that the next generation were ill-prepared to take over the family assets. ‘As a result, managing expectations is critical. The worst-case scenario involves a child declaring, ‘I'm not going to bother with exams, university or a career. I will be well off for the rest of my life. Surely you’ve heard of my family's company?’ - when there is actually very little liquidity. It is critical for parents to communicate the reality to the next generation. ‘It is an iterative process that can begin as early as childhood. Factory visits, for example, or if you are a hotelier, going into different sites and knowing how they work. Other families may focus more on investments where they start to engage the next gen, and that might be 18 or 25, for example,’ Birtwistle says. Aside from preparation and an openness to talk, Ronald Graham also emphasises the importance of a good role model. ‘We see business founders who take the time to involve family and who value and respect family time as inspirational role models for the next gen in their family. Equally those leaders who are workaholics and repeatedly miss important family events will easily put off the next gen from wanting to follow them.’ He adds, ‘It’s also important to try and teach ALL of the next gen about their role or lack of in the family business. This might appear unnecessary but where a founder identifies his or her successor early on and also encourages other family members with their careers either in other parts of the family business or more usually in something totally unrelated, this can work wonders to achieve recognition for all and harmony going forward.’ For anyone claiming their stake in the family business (or attempting to wriggle out), the legalities need to be in order. Bailey tells , ‘Every family business has its own dynamics and there isn’t a one size fits all approach when it comes to navigating the legal terrain with multi-generational families and succession. However it is likely that a business family will want to consider trust structures that can strategically manage the share ownership, a shareholders agreement that can manage the management and decision making and a family council to manage the family’s expectations on performance and value extraction Webster adds: ‘The legal framework should be as much about influencing the behaviours of those involved as providing a set of legal rules to ensure ordered succession and protection against life events such as divorce – the documentation needs to be tailored to reflect the social contract which the family wish to set down. This needs to be coupled with a structured flow of information and an ongoing education of stakeholders about the practicalities of how a structure works which helps to create an environment in which the views and aspirations of all stakeholders can be socialised at the right time.’