Week 5

Question 1

The Walsh Succession Model

Processes

Answer 1

Management Succession

Ownership succession

Question 2

The Walsh Succession Model

Activities

Answer 2

Family communication

1. Initial Interviews
2. Guiding Principles
3. Family Business rules
4. Family business meetings
5. Family Council meetings

Grooming succesors
Management processes

Ownership governace

1. Board of directors
2. Board of Advisors

Shareholder Agreement

Question 3

The Walsh Succession Model

Outcomes

Answer 3

Integrated family members
Assessed options
Informed decision making
comfort levels

Question 4

The process

Answer 4

Gathering the issues:

The issues that are present or 
that are likely to present 
themselves will be identified 
during the individual 
interviews 

Important that family members
feel comfortable sharing the
issues

Confidentiality is key!

Question 5

Ownership succession issues

Answer 5

Communication to family
members

Timeline for ownership
succession issues

Who can own shares & why?

How will the ownership be
transfer be funded?

Compensation for owners after
transition

Compensation for new owners

What role will the current
owners play during and after
the transition?

Family feuds

Exit strategies

Death

Incapacity

Voluntary exit/retirement

Non-active minority
shareholders

Nuptial or pre-nuptial
agreements

Wrong focus

Shareholder agreements &
estate plans