Family businesses

Family businesses are unique in that they are driven by the changing dynamics between stakeholders, the problems faced in ensuring the continuity of the business, and the management challenges of meeting differing needs of multiple generations. Those that survive and flourish typically do so with the best legal advice and tailored support.

Protecting businesses and family relationships

Our lawyers remain at the forefront of resolving these issues, and have specific experience working with family businesses throughout their lifecycle – from planning the transition of the business through to diversification, to the introduction of the next generation to meet current or future commercial needs.

Family businesses need to be thinking continuously about the future and, ultimately, the succession of key stakeholders and leaders. We are able to assist in developing comprehensive plans that promise a smooth transfer of leadership and ownership, addressing the needs and aspirations of all family members involved. Our expertise in business structures and tax mitigation helps to future proof the enterprise so that wealth is preserved and grows for subsequent generations.

Governance structures can be an essential element in maintaining harmony and clarity within the family business. We work with clients to establish robust frameworks that define roles, responsibilities, and decision-making processes, thereby reducing the potential for conflict. In cases where disputes do arise, our dispute resolution specialists are adept at navigating the complexities of family dynamics to find amicable solutions that protect both businesses and the relationships underpinning them.

Preservation of the family business is at the heart of our approach. We provide strategic advice on maintaining the core values and vision of the business while adapting to changing market conditions. Our team also offers guidance on exit strategies and taxation, ensuring that any transition out of the business is managed efficiently and with minimal tax implications.

They are professional, approachable and eager to work with firms where we can add value to each other’s clients.

The family business team includes partners with corporate experience and members of family business specialist groups who are at the cutting edge of the private wealth industry. This market-leading expertise gives our clients access to a comprehensive wealth management service and the most up-to-date planning techniques.

Our goal is to assist clients in creating and implementing permanent, flexible solutions to the challenges they encounter, securing both the business and the success of the family for current and future generations.

How we help our clients

Succession issues for key stakeholders

Trading structures and tax mitigation

Governance structures

Protection of intellectual property and business assets

Creation of family constitutions and charters

Amicable resolution of disputes

Preservation of the family business

Planning of potential exits from the business

Structure of exits, including potential tax implications

Sale, merger or transfer of ownership

The ‘excellent’ Penningtons Manches Cooper has strong international capabilities and routinely advises UK resident and non-resident, non-domiciled individuals, international families, trustees, private banks, family offices and business owners around the world.

The firm has strong technical ability, a responsive team and offers creative solutions.

Recent work highlights

Lifestyle funding advice

Providing guidance to an international family on the funding of the lifestyle of a key beneficiary in the UK, while protecting trust assets from potential claims by the beneficiary’s new spouse.

Expert prerogative in shareholder dispute

Acting for the majority stakeholder in the family business, having a claim relating to the valuation of his brother’s (the minority shareholder) shares dismissed and costs awarded.

Deceased farmer’s estate

Assisting the family of a deceased farmer with the estate, addressing complexities around the farm development, family trusts, unadministered estate, and tax compliance, and ensuring the next generation received maximum inheritance value and equal treatment.

BPR planning

Advising on the business property relief planning for a family company sold for £30 million and the post-sale transition from company directors to wealthy investors.

£19 million of tax savings

Implementing a family partnership as part of an estate planning strategy, preserving entrepreneurs’ relief and saving £19 million in tax.

Business support for next generation

Supporting the next generation of a retailing magnate’s family in successfully establishing and growing their own independent businesses while advising on differing succession issues for key stakeholders.