BUSINESS SUCCESSION PLANNING
Why Do Family-Owned Business Need Succession Planning ?
The majority of ASEAN family-owned businesses were founded in the 1960s, following World War II, and lasting until the 1980s, during the region’s economic boom. Rising China family-owned businesses began slightly later after China’s economic reform in the 1990s, but today, most family-owned corporations have surpassed the world ranking.
Most of these family-owned businesses have grown into large corporations involved in a variety of businesses, with operations in various ASEAN countries as well as other regions. Most of these companies are owed by overseas Chinese.
Throughout the booming economy, the founders of these businesses have indeed acquired substantial wealth and have invested in a diverse range of assets in ASIA and around the world, which are subject to various laws of inheritance and taxation issues.
Another major task that faced by the family-owed business will be the succession issues on who should lead and how to have a smooth transition.
Most Chinese family-owned businesses have expanded globally in order to diversify and form alliances with international companies, which can also improve technology transfer within the region.
Chinese family-owned businesses are facing challenges as a result of high competition and regional instability, which necessitates more sophisticated succession planning and asset protection as a means of meeting these challenges.