“Don’t Tell My Wife”
It may seem very inappropriate in today’s world but it is still not unusual to hear a business owner say, ‘There is no need to discuss this with my wife’. And it may also be, of course, a partner or husband who is being kept in the dark.
To exclude whoever this significant other may be — who is probably not actively involved in the business — from your succession process is a huge mistake.
Let me say that again, it is a huge mistake. The reasons for this approach can be varied. In some instances, it’s the owner wanting to get their head around the issues first before discussing it with their partner, but in most cases, it is because they want to manage the succession issues and make the decisions by themselves. Not necessarily because they are hiding something but more likely they are just not used to openly discussing business issues. And with succession, this means deeply personal issues. There is something in running a business that can harden the emotions of an owner. Often there are daily doubts and stresses in making the business successful, dealing with employees, customers and suppliers, and in managing all the financial demands of a business. It’s often easier to go home at night and to lock all these stresses away rather than open them up at the dinner table. It’s about seeking to protect the family from worries and honestly giving themselves some space to rest. But that burden can become unbearable for some business people, and, truthfully, it is healthier for all concerned to share the burden from the commencement of the business.
When it comes to succession there can also be some very practical reasons why your partner should be drawn into the discussions very early:
· Often they own equity in the business and/or are signatories on banking facilities. And, therefore, will need to sign relevant documents at some point.
· They tend to bring a different perspective to the table which can be extremely useful, for example, achieving harmony in the family.
· They will want to know how it will impact them and what financial provision is being made for their future.
· They can bridge any communication gap that may exist between you and other family members.
· They can support you in making the necessary changes in your life.
I have seen large succession processes where the other partner was not involved until documents were presented for them to sign. And they declined, cancelling out several years of planning and work.
Don’t make the mistake of not engaging your partner in the process, and if you have specific concerns discuss them with your independent succession advisor to develop solutions.
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An Invaluable Resource — ‘Transition — Orienteering The Lands of Succession’
