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By Morgana Borssuk and Amanda Marcos *

Promoting family succession in a company requires time, expertise and focus - be it small, medium or large. Even if put in this way, in a summarized form, these words are powerful, with the capacity to guarantee that the heirs can command not only legally, but in fact, the family businesses, enabling their continuity.

Making future generations aware of the company's daily life is an activity that should be part of that organization's life. Early on, successors must acquire intimacy with one goal: to develop identification with the business.

The process of convincing those who will have the responsibility to take the baton can eliminate many surprises and obstacles, such as lack of interest or lack of competence to make decisions, delegating to third parties who will not always understand how a family business works, its internal relations and how in the light of this parental context, the decision-making process takes place.

In Brazil, a survey by the Brazilian Micro and Small Business Support Service (Sebrae) found that 90% of the country's companies are family owned. Other surveys reveal that out of every 100 family societies, 30 reach the second generation and only 15 reach the third succession level.

The figures therefore show how challenging a corporation's survival environment with family ties is. The reality requires that the heirs participate in each stage of the development plan. And the sooner that happens, the better.

It is not difficult to verify among great Brazilian entrepreneurs, stories that show how these business men and women show immense gratitude, all directed to their parents for having the vision of making them dive into the routine of each sector of the company, as if employees were in a constant training process.

In addition to creating such valuable intimacy and identification with every inch of the business in the heirs' minds, the process of getting to know in depth will impact future decision-making, carried out with confidence, by those who truly know the market in which they operate. 

As can be seen, the succession planning of a small, medium or large company is an indispensable tool for the passing of command to avoid or mitigate conflicts between heirs, ranging from the division of power, inheritance or even the complete inability to touch the business ahead, with the desired financial health and prosperity expected.

It is not uncommon for a sudden succession to open up the possibility of a long litigation, capable of compromising all the heritage built by previous generations. Thus, succession planning emerges as a safe and well-structured alternative to make a professional transition. The family will check how much cheaper and less stressful it is than the well-known inventory.

In practice, the creation of a holding company appears, for example, as an alternative for donors to deliver the goods indicated to the heirs in life, without departing from business. They can remain lifelong usufructuaries, permanent members of the board of directors (or advisory board), all in order to avoid conflicts and arbitrate solutions that may appear while the succession process unfolds.

The advantage is that this planning - with the holders actively participating in the succession stages - will take time, fulfill stages, respect the different realities and ways of thinking, with costs being managed and likely to be diluted over the years .

This situation differs from inventories, whose characteristic determines the mandatory passage of all assets after death, if the predecessors have not adopted criteria for advance planning.

The risk of litigation is as natural as the right of the heirs to be the faithful beneficiaries of the assets of their patriarchs. But succession planning has the conditions to make use of an old, but precious maxim, that: a family that works together, remains together.

* Morgana Borssuk is a lawyer, administrator and has a postgraduate degree in Business Law from ISAE / FGV. Partner who owns the office www.borssukemarcos.com.br, specializes in real estate law - an area in which she has been working for more than eight years - real estate and business property management. He specialized in personalized extrajudicial procedures in order to avoid entering the judiciary to resolve everyday issues.

* Amanda Marcos is a lawyer and has a postgraduate degree in Business Law from ISAE / FGV. Partner at www.borssukemarcos.com.br, she has seven years of experience in corporate law and property management. It also develops activities in legal proceedings involving contractual and tax matters, labor. He has experience in legal controllership and bidding.

Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies

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