Passing the torch: Preparing your family business for the next generation
Family succession - More than just a hand-over
While passing your business on to family may seem straightforward, the reality includes financial, legal, and emotional complexities. Navigating these challenges requires careful planning and open communication among all involved.
Understanding succession planning
Succession planning is about transferring part or all of your business to family members. This involves selecting the most suitable candidates from the next generation, often your children or extended family. The emotional side of this process is significant, and seeking independent advice can help bring clarity and objectivity.
Key advantages of family business succession
Training the next generation under your mentorship allows them to develop the skills and experience needed to lead. This not only ensures the right people are in the right roles but also provides peace of mind that your legacy will continue.
By planning ahead, you safeguard your business against unexpected changes, reduce recruitment costs, and open up unique career and financial opportunities for family members. Succession secures continuity for staff, upholds brand reputation, and reassures stakeholders that the business remains in trusted hands. It also preserves the company’s identity and values.
Getting started with planning
It’s wise to begin succession planning as soon as possible. Early preparation helps you make informed decisions and set up structures to minimise disruption. Whether you’re stepping away completely or reducing your involvement, consider how each role will contribute to future growth.
External advice can be invaluable in achieving your goals, especially as succession may have significant tax and business implications. Consulting with experts ensures you’re well-prepared for the transition.
How we can help facilitate your family business succession
Our deal advisory, tax, and business advisory teams are here to guide you through every stage of transferring your business to family members. We offer support in:
- Valuing your business to ensure a fair transfer price
- Clarifying your objectives and timing to structure the transaction appropriately
- Identifying financing options, whether through internal funds, external debt, or new equity
- Advising all family members to reach equitable agreements
- Reviewing ownership and management structures for future value and responsibilities
- Providing guidance on tax implications for you, your family, and the business
- Exploring tax reliefs and mitigating potential tax traps with bespoke planning
- Recommending tax-efficient deal structures
- Managing interactions with the Australian Taxation Office (ATO) where necessary
- Outlining reporting requirements to minimise administrative burden
- Reviewing shareholder agreements, wills, and insurances to protect interests in cases of illness or death
- Assessing transfer methods—whether gifting or selling—and their financial impact on your future
- Supporting stakeholders with personal planning needs beyond the transfer itself
- Advising on investment and superannuation strategies linked to the transaction
If you’d like more information or support, please reach out to your usual Forvis Mazars advisor, or get in touch with our advisory specialists using the form below or the contact numbers provided.
| Melbourne - Christopher Cicutto | Sydney - Dean Newman |
| +61 3 9252 0800 | +61 2 9922 1166 |
Published: 10/02/26
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.
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