In India, succession planning is quite complex. With family-run businesses progressing fast on the path to globalization, succession planning has never been as important as it is today. Families are often large with several factions, and with multiple people involved in the business, deliberations around succession planning can be prolonged and difficult, making it imperative to involve an arbitrator or mediator.
At Krishna R, we understand the importance of succession planning and work with many families to manage the generational change. We help in differentiating between the business issues (such as deciding the business strategy, choosing the future leaders for business, attracting professional management) and the family issues (leadership development, engaging the next generation, conflict management approach, reinvestment of profits, spent on education, marriage, social status) and assist the family members in decision making. We help families design and set up their Family Constitution that acts as a governance framework for all business and family aspects. We assist in setting up a family council, next-generation council, family office and identify suitable protocols for conflict resolution and future growth.
We even assist in identifying alternative ownership structures for the family (such as holding companies, LLP, Trust, etc.) for wealth maximization and protection, in line with the business objectives. We critically evaluate the said options from a tax and regulatory perspective, assist in selecting the most appropriate solution and thereafter in implementing the same (including drafting of trust deeds, settlement agreements, wills, letter of wishes, family protocols, etc.). With our deep knowledge in the field of tax and regulatory, we identify the impact of changing laws and business environment on succession and inheritance of wealth.
Our experts in this space even assist in situations of dispute in families, arbitration, asset distribution, family settlement, etc. and provide suitable inputs from a tax, regulatory and business perspective.