Preparing to pass the business to the next generation is often seen as one of the biggest challenges facing the family business, resulting in changes both for the family and the business. In addition, there are issues that need to be faced such as the fact that the current leader is getting older, and getting closer to ‘death’ which is a topic that is not often up for discussion, and there is the matter of the next generation waiting in the wings, some willing and able to take the helm and others quietly hoping that they will never be asked. Sadly, doing nothing does not make the succession challenge disappear as it will inevitably happen one day. So, it is not easy to plan for succession due to the emotional and relationship aspects that need to be addressed, but successful family businesses mitigate the risk to both the family and the business by planning for the future and therefore being in a position to address the topic in a much more rational and business-like manner. As Paul Andrews, Founder & CEO of Family Business United explains, “Succession planning should always be on the agenda for any business and cannot really start early enough. Businesses that plan to succeed reduce the risk of problems further down the line.” “Although it does not eliminate the risks completely, holding a rational, sensible conversation about what the business needs from the leader going forward and evaluating this against the potential in the next generation in a clear and practical manner, undoubtedly provides a greater platform for success going forward.” With that in mind, the succession planning process can be broken down into seven key steps, helping to engage the next generation in the conversation: 1. Preparing Attitudes It is important that the next generation understand the nature of the business, and the values that are important too. Many of these will be derived through contact with the family business as they grow up, summer work experience, listening to conversations, visits to the office etc and these are important so that they gain a feeling for ‘what the family business is all about. 2. Entry Into The Business Clearly, the next generation need to want to work for the business, have the right skills and competencies and entry into a role in the family business will provide them with this opportunity. It is important that they enter a role for which there is a need and are not simply recruited as they are related and there needs to be a clear job description and role for them, just as there would be for any other new inductee. It is also important to ensure that they are given the necessary training, orientation and assistance in developing relationships within the business with other employees, managers and directors too. 3. Developing Their Understanding Once the next generation have gained a footing in the business and are performing a role, the next stage in the succession planning process is to develop and cultivate the skills required to lead the business in the future. Initial understanding can be derived internally but external inputs may assist in the process through mentoring, leadership programmes and university educational programmes too. 4. Leadership Development As the next generation get older, and the existing generation have aged too, there will be a period when the leadership skills of the next generation are developed, preparing them with the skills that may be required to run the business in the future. 5. The Selection Process Selecting the next person to run the business is not an easy decision, and there may well be more than one candidate to consider from within the family as well as outsiders. It is important that the selection process is clearly understood by all concerned and that the process is adhered to in order to reduce the risks going forward. The process may involve selection by the incumbent, the family executive team, the board of directors or general consensus between the family, board and executives. 6. Transition Once the successor has been appointed there will be a period of transition where they become involved in the strategic decision making processes and the development of their own management team too. Over a period of time, key relationships are transferred and naturally the incumbent will do less and the successor will do more. 7. Starting Again Although unlikely to commence straight away, when it comes to leadership of the family business, succession planning should always be on the agenda and consideration should always be made to the next generation and developing the leaders of the future. As Paul explains, “All too often family businesses leave the decisions until it is too late – the incumbent passes away suddenly and the next generation are left to pick up the pieces, at a time when they are emotionally hurt and grieving and planning in advance can help to reduce the burden at that time.” “Furthermore, failure to address the issues on a timely basis may result in the next generation forging a career outside of the family firm and then decide that they don’t want to come back to the family business so communication between the generations is vital to ensure the right outcome overall, for the family and the business.” Succession planning does not happen overnight but clear and open communication over the years can certainly help to provide a framework within which to operate, with everyone knowing where they stand and understanding what the business needs and the skills that the next generation need to lead the business going forward too.

When business owners decide to step down, one of the most common succession options is to sell the business to a third party. A trade sale, where a business is sold to an external buyer such as a competitor or corporate purchaser, can offer numerous advantages, but it is not something to be entered into blindly without fully understanding the consequences. Here, we take an in-depth look at this exit strategy and explore the key benefits and potential drawbacks of pursuing a third-party sale. What Is A Trade Sale? A trade sale involves selling the business to an external buyer, which could be a competitor or a company in a related industry. The buyer may be an individual, a corporate purchaser, or an investment firm with significant resources. In many cases, the business will be sold for a lump sum, but in some situations, the deal may include performance-based payments that come after the sale. Trade sales are an attractive option for many business owners due to their potential for a quick exit, financial return, and continuity of the business under new ownership. Advantages And Disadvantages Of Trade Sales A trade sale can be a lucrative exit strategy for business owners. However, the process is complex and can come with risks. Careful planning and understanding the full scope of the trade sale process are essential to ensure that the transition is smooth and that the business is positioned for success under new ownership. There are several core pros and cons to consider when deciding upon a trade sale exit, including; Positives: Higher sale price : One of the most significant advantages of a trade sale is the potential for a higher sale price. A competitive bidding process can push the price upward, with multiple buyers offering competitive offers. Additionally, a buyer may be willing to pay more if they believe they can increase the business's profitability after acquisition. Accelerated payment : In many trade sales, particularly those involving private equity-backed buyers, the business owner can receive a large portion of the sale price upfront. This is referred to as 'accelerated consideration.' The buyer often has the capital to pay for the business quickly, making it an attractive option for owners looking for a fast exit. Shorter handover period : Unlike some other exit strategies, trade sales can often be completed with a shorter handover period. This means the business owner can exit more quickly, although they may remain involved for a brief period during the transition. The specifics of the handover, including the owner's role during this period, will be outlined in the sales agreement. Tax : Another advantage of trade sales is the potential tax benefits. Capital gains tax (currently 24%) applies to the sale of assets or shares in the business, which is often lower than income tax or taxes on dividend income. There is also the possibility of claiming Business Asset Disposal relief which means only 10% tax is paid on the first £1million of gain. This tax advantage makes trade sales an appealing option for owners looking to maximise their financial return. Negatives: Due diligence process : One of the most time-consuming aspects of a trade sale is the due diligence process. Third-party buyers will thoroughly review all aspects of the business, including financials, operations, intellectual property, and employee records. This can create a complex and disruptive process that puts the business's confidentiality at risk. While non-disclosure agreements (NDAs) can protect sensitive information, there is always a possibility that some details could leak. Risk of distraction : The due diligence process, as well as the negotiations leading up to the sale, can be highly distracting for the business owner and management team. This can lead to operational disruptions if not properly managed, affecting the business’s day-to-day performance. Deferred consideration : In some cases, part of the sale price may be paid out over time based on the future performance of the business. This is referred to as deferred consideration. While it can be financially advantageous, it introduces the risk that the seller will not have control over the company’s future performance and may not receive the full amount if the business doesn't perform as expected. In conclusion, whilst a third-party sale can be a highly effective exit strategy for business owners, it is crucial that they be fully aware of the complexities and risks involved. To ensure a smooth transition and maximise the benefits of a trade sale, careful planning, clear communication, and expert advice are essential. By weighing the pros and cons and understanding the full scope of the process, business owners can make informed decisions that align with their long-term goals and the future success of their business. About the Author - Should you require assistance or support in any aspect of structural, governance or succession planning for your family business, the team at Buckles can offer impartial, experienced guidance on all aspects of ownership transferal. Contact them  via their website to discuss the options available.

Recent news that Prada has agreed to buy Versace in a £1.1billion deal, that brings together two of Italy’s biggest luxury fashion brands, highlights the success delivered by the company’s owners and their determination to keep their business independent and under family control. Duncan Jackson, CEO of Buckles Solicitors LLP, shares his thoughts on succession and the lessons from this recent news for other family firms. Prada was founded by Mario Prada in 1913 and has transformed from a small leather goods shop in Milan into a $19 billion global empire under the stewardship of Miuccia Prada and Patrizio Bertelli. However, as both founders approach their late 70s, the question of succession has moved to the forefront of the company’s future. Miuccia and Patrizio, who have overseen Prada's rise to prominence, are now preparing to hand over the reins to the next generation – Miuccia’s eldest son, Lorenzo Bertelli. This transition is not only vital to the future of Prada but also emblematic of the challenges faced by many family-owned businesses, particularly those in the luxury sector. While the Bertellis are taking proactive steps to ensure Prada’s continued independence amidst growing global consolidation, their approach to succession offers invaluable lessons for other family businesses, including those in the UK. A Plan For Prada’s Future Miuccia and Patrizio’s succession plan is methodical and aims to secure the long-term health and autonomy of the Prada brand. Lorenzo, who has already taken key leadership roles in marketing and sustainability, is being groomed to take over the company. He now holds 50.5% of the family's holding company, Ludo, which controls 80% of Prada. This move ensures that Lorenzo is well-positioned to lead the company while maintaining the Bertelli family’s controlling stake in the business. This decision is not just about ownership but also about leadership. Lorenzo has been deeply involved in the company’s operations, learning the ropes from his parents over time. This succession plan highlights just one way in which family businesses can handle the migration of ownership across generations, but it is not a method that will suit everyone. Here, Miuccia’s transfer of nearly all her shares to Lorenzo demonstrates a rare move towards a controlled transition of power - one that will preserve the family’s influence and control while passing the baton to the family’s chosen heir. Many other businesses will instead opt for a more gradual approach which sees transition occur over many years, and not always just to one sole beneficiary. But of course, the whole process of succession should involve taking a realistic, impartial view of what will work best for the business and the individuals involved in the longer term, and taking the route which will achieve the most desired outcomes in the future. What UK Family Businesses Can Learn From Prada’s Succession Plan Prada’s succession strategy offers several key takeaways for family-owned businesses in the UK, especially those looking to secure their future while maintaining control and independence. Start Planning Early : Like Miuccia and Patrizio, UK family businesses should start planning for succession well in advance. This ensures that the next generation is adequately prepared and that the transition process does not disrupt day-to-day operations. Delaying decisions can lead to confusion and conflict, as seen in the struggles of brands like Ray-Ban’s parent company Essilor Luxottica, where succession challenges persist after the passing of founder Leonardo Del Vecchio. Ownership And Control : Miuccia and Patrizio’s decision to transfer ownership to Lorenzo while retaining certain control mechanisms is a smart move. Family businesses should consider mechanisms that allow for generational transfer of power without completely diluting ownership. This can help ensure that the family’s influence remains intact, even as the business evolves. Diversify Leadership Experience : Lorenzo Bertelli’s current roles in marketing, sustainability, and other key areas of Prada’s operations are crucial in preparing him for the role of CEO. UK family businesses should prioritise leadership development for future generations, ensuring that the next generation gains experience in critical business areas, not just in the family’s legacy. Be Ready For Change : Succession planning should not be static. As the luxury market shows, businesses must be agile to thrive in today’s environment. Prada’s focus on sustainability and adapting to new consumer trends is a testament to the need for family businesses to embrace change. UK family businesses should also be ready to innovate and evolve as market conditions shift, even if it means taking calculated risks. Conflict Resolution And Communication : Effective succession planning also requires clear communication among family members. The Bertellis have managed to divide ownership responsibilities clearly among themselves, with Miuccia stepping back but remaining involved in the voting process. Businesses should establish clear lines of communication during succession to prevent disputes during the transition, and if necessary, put in place external advisors to help navigate family disagreements. Guarding Against External Pressures : Prada’s independence is particularly important in the face of increasing consolidation in the luxury industry. Many family businesses in the UK, especially in manufacturing, agriculture, and retail, face pressure from larger corporations. To maintain independence, they may need to innovate, diversify, and protect their unique family values. Succession planning should factor in how to safeguard the family’s legacy while remaining competitive. Prada’s approach to succession provides a valuable case study for other family businesses looking to secure their future, regardless of the sector they operate in. By planning early, ensuring leadership development, and preparing for market changes, these businesses should be able to better navigate the numerous challenges involved in passing the baton to the next generation. While the future may be uncertain for Prada, the Bertellis’ strategic approach to ownership and control may well provide the foundation for the brand’s continued success, and offer some insight for other family businesses also striving to maintain their independence and legacy in an increasingly corporate world.

Succession planning is often one of the most delicate and decisive phases in the life of a family business. While many enterprises thrive on the strength of their traditions, they can falter without a clear roadmap for leadership transition. A robust succession plan ensures not only continuity of operations but also the preservation of values, identity, and vision across generations. Too often, families delay these conversations, either out of discomfort or optimism that “there’s still time.” However, succession is not a single event—it’s a process. One that demands foresight, honesty, and strategic thinking. So, what are the essential steps in crafting a successful succession plan? 1. Start Early The most effective succession plans are those that begin well before they are needed. Ideally, discussions should start at least five to ten years before the current leader intends to step back. Early planning allows time for thoughtful decision-making, development of future leaders, and smooth transitions. 2. Clarify the Vision and Objectives Before identifying successors, the family must agree on the long-term vision of the business. Is the goal to remain family-owned? Will the business expand or consolidate? Is professionalisation part of the plan? This step involves setting clear objectives—not just for who takes over, but for what kind of future the family envisions for the enterprise. 3. Identify and Assess Potential Successors Whether from within the family or externally, potential successors should be assessed based on competence, commitment, and cultural fit. It’s important to distinguish between entitlement and merit. Many families establish criteria for leadership roles, including education, experience, and performance. This stage may involve formal evaluations, mentoring programmes, or roles designed to test a successor’s readiness and suitability. 4. Develop a Leadership Development Plan Once successors are identified, structured development becomes crucial. This may include leadership training, secondments to other businesses, or taking on increasing responsibility within the company. The aim is to prepare the individual not only to manage but to lead, ensuring they understand both the operational and emotional dimensions of the role. 5. Establish Governance Structures Good governance underpins successful succession. This may involve forming a family council, creating a board of directors (including non-family members), or drafting a family constitution. Such frameworks help manage conflict, define roles, and ensure that business decisions are based on strategy, not sentiment. 6. Communicate Transparently Transparency is critical—both within the family and across the organisation. Uncertainty breeds anxiety, and silence can lead to speculation or division. Regular communication about the succession process builds trust, clarifies expectations, and allows for feedback from key stakeholders. 7. Plan the Handover in Phases Succession is rarely a handover of keys on a Friday afternoon. Phased transitions—such as shared leadership roles, gradual reduction in responsibilities, or advisory positions—can help the outgoing leader ease into retirement while the successor gains confidence and authority. This approach also enables knowledge transfer and protects the business from disruption. 8. Legal and Financial Planning No succession plan is complete without addressing legal and financial implications. This includes updating wills, shareholder agreements, tax planning, and transfer of ownership. Engaging solicitors and accountants with experience in family business is essential to ensure compliance and avoid costly pitfalls. 9. Review and Adapt Succession planning is not a one-off task. Plans should be reviewed regularly and adapted to reflect changes in the family, business, or market conditions. Flexibility ensures that the process remains relevant and effective. 10. Preserve the Legacy Finally, succession is not only about leadership. It’s about stewardship. Beyond roles and shares, families must pass down the values, vision, and culture that define the business. Rituals, storytelling, and documented histories all play a part in safeguarding the intangible assets of legacy. Closing Thoughts A well-executed succession plan is an act of leadership in itself. It requires courage to step aside, wisdom to prepare others, and humility to share power. In doing so, founders not only secure the future of the business—they honour its past. For family businesses, where personal ties and professional goals are so deeply entwined, succession planning is both a strategic imperative and a personal journey. The earlier it begins, the stronger the path forward becomes.

Family business succession under pressure as one in four lack clear heir, new research finds 92% of family business owners want to keep it in the family, but over a quarter don’t have a qualified successor A new study by Hymans Robertson Personal Wealth reveals a stark gap between intention and reality for family business succession planning in the UK. While a vast majority of family business owners, 92%, say they plan to pass on their business to a family member, 27% admit they do not currently have a clear or qualified successor within the family to take over the reins. The research findings highlight a potential vulnerability among family-run firms, many of which form the backbone of the UK economy. Despite the strong desire to preserve family legacies, almost 1 in 5 (19%) have no succession plans at all, 34% have a plan in place and 46% are still in the process of developing theirs. Jeff Simpson, Head of Wealth Management at Hymans Robertson, says the data points to a worrying lack of preparation at a critical moment for many family businesses. “Family business owners face a myriad of issues and challenges, from family dynamics and finances, right through to government changes. Transferring ownership is a deeply personal and complex journey that goes well beyond financial decisions." "The wider economy, alongside recent policy shifts from the new Government, adds yet another layer of complexity. Many business owners are clearly worried, and rightly so.” The research underscores that emotional factors remain a key hurdle in the transition process. More than a third of respondents (36%) say they are concerned about creating family disharmony during the transfer of ownership, while 33% worry about preserving their company’s values in the hands of the next generation. For those not intending to pass the business on to family, the most commonly cited reasons were a lack of interest or perceived inability among family members to take over, a view held by 38% of respondents. Simpson commented: “Without a clear plan, business continuity is at risk. Succession isn’t just about choosing a successor, it’s about preparing the next generation, addressing family expectations, and aligning personal, financial and business goals. The sooner families start these conversations, the better placed they’ll be to preserve both their wealth and their legacy.” Transferring ownership of a family business is not just an emotional decision, it’s a financial one. According to the research, 70% of family business owners are concerned about the wealth management and financial planning aspects of succession. Financial complexities, including higher tax liabilities (32%) and cash flow challenges (25%), add to the burden of planning for the future. Despite this, 36% of business owners have never sought professional advice on succession planning, leaving them to tackle unexpected financial hurdles without support. Simpson emphasises the need for expert guidance, stating: “Taking proactive steps such as early financial planning and seeking expert advice can help family businesses protect their future and ensure a smooth transition.” Click here to read the full report. Join Hymans Robertson Personal Wealth and guest speakers from Cut The Mustard Consultancy, Squire Patton Boggs and Family Business United, at their upcoming webinar – Securing the legacy: Planning a smooth transfer of family business ownership. Gain insights from wealth management, legal, and family business experts as they explore the risks, opportunities, and practical steps involved in handing over the reins. Register now to secure your place at the webinar taking place on the 24 June. The webinar will also be available on-demand for anyone who registers interest.

New research from Advania, a leading Microsoft partner, reveals that IT complexity is hampering the progress of mid-market organisations in harnessing the full potential of new technologies. The vast majority, 81%, struggle to scale, update and future-proof their underlying tech stacks in the era of Artificial Intelligence (AI). This independent study by Censuswide, is the largest of its kind, surveying 966 mid-market IT decision-makers across organisations in the UK, Sweden, Denmark, Finland, Norway and Iceland. A significant portion, 98%, acknowledge IT Complexity issues in their current tech stack, such as: Limited understanding of AI’s potential for their organisation Existing technical debt and confused budget spending Net-Zero knowledge gap Limited Understanding Of AI's Potential A third of the mid-market organisations surveyed, 33%, believe they cannot future-proof their tech because of a lack of knowledge in AI. Even including those who don’t feel they lack AI knowledge, a staggering 81% feel unable to grasp the transformative potential of AI for improving their operation’s productivity. Only 16% can see how AI could help them build the long-term technical skills needed for revenue growth. This suggests most mid-market organisations have not developed a strategy for AI integration. Business leaders need knowledgeable technical partners, not only to help them successfully implement and adopt AI technology, but to envision the benefits AI can make for their organisations and support them in making the right choices for their business needs. Many are unaware of the power of embedded AI solutions such as Microsoft’s Generative AI virtual assistant, Copilot for Microsoft 365. These AI solutions require minimal technical configuration, allowing business leaders to focus on driving adoption and usage in add real value to their organisation. Existing Technical Debt & Confused Budget Spending A key complication for the mid-market is Technical Debt, the burden of work required to upgrade existing IT systems. When asked how they prioritise and remove technical debt, over half, 57%, of mid-market organisations admitted they don’t regularly review and replace legacy systems. One in four also take a reactive approach to IT, waiting for issues to occur before they act. Ignoring tech debt worsens the impact and solution. It will inevitably cost more to fix later. Within mid-market organisations, siloed teams can suffer from a lack of concrete guidance on where to invest fragmented budgets, resulting in confused or incohesive spending on technology. Budget constraints are a clear barrier to innovation. Nearly a third, 30%, of mid-market organisations cite limited budget as the reason for their outdated technology infrastructure. However, when asked what they spend today versus what they would spend with an ideal budget, they would make the same decisions again, signalling that their priorities are right but that they lack the funds and don’t know where is best to allocate budgets to solve IT complexities. Mid-market organisations, with a finite budget, require assistance in prioritising their spending to effectively repay technical debt, which can act as a barrier to AI exploitation. Conversely, integrating AI can also contribute to the repayment of this technical debt. However, only 16% of mid-market organisations recognise building the technical skills needed for long-term growth as a key impact of integrating AI, leaving many unable to see or understand the benefits. Net-Zero Knowledge Gap Finally, Net Zero commitments mean organisations cannot operate in a vacuum. They need to be aware of the effect of IT decisions on society’s sustainability goals. Budget pressures and IT complexity impact wider strategic organisational goals such as achieving Net-Zero. Mid-market organisations must face the Net-Zero challenge too far on top of maintaining flawless everyday IT operations. The interest is there, with a third of respondents having shifted to the cloud to reduce emissions, and one in four opting for Net–Zero cloud providers. Most are struggling to make progress however, as two- thirds, 66%, admit there is currently no internal education about the environmental impact of their tech stack. Nick Isherwood, Chief Information Officer, Advania, says “The mid-market is smart and competitive, yet IT complexities act as significant roadblocks to them. Many just focus on one-time fixes when there are problems, but don’t recognise the need to be set up for constantly evolving circumstances." "The mid-market simply does not have the luxury of large IT departments and unlimited budgets to resolve these issues. This leads to them not being able to focus on other priorities like AI and Net-Zero, they’re distracted by their IT complexities. They follow official guidance on how much they should budget for cloud services, for example, but one size can’t fit all." "Organisations need to consider their specific needs, the market they play in, the contextual threats they face, and flex their budgets accordingly. That’s where we add the greatest value.”

Small businesses that are using artificial intelligence (AI) as part of their business operations are growing faster, creating more jobs and generating more revenue than those that don’t. This data, published in Venture Forward’s annual report, illustrates how this entrepreneurial spirit manifests with microbusiness owners betting on themselves. The analysis comes from Venture Forward, a multi-year, international research project from GoDaddy that analyses data from more than half a million British microbusinesses.   It shows the transformative effect that investment in technology has had on Britain’s microbusinesses, with those harnessing AI for their business, reporting significantly improved growth prospects. AI Driving Job Creation While some narratives suggest that AI may lead to the loss of jobs, GoDaddy’s data suggests that among microbusinesses it is quite the opposite. Microbusinesses using AI are twice as likely to employ at least one other person than those that do not, while nearly half (47%) of employees are at AI-supported businesses work full time, compared to 34% of employees at non-AI businesses. Entrepreneurs are utilising the technology to automate time-intensive jobs such as copy-writing (70%), summarising information (51%) and content creation (40%), which is allowing many to focus on expansion. Meanwhile, in the next twelve months, more a third (36%) of entrepreneurs using AI plan to hire more staff, compared to one in six (15%) who are not. They were also three times as likely anticipate “substantial” workforce expansion in the coming year. AI-Enabled Microbusinesses Outperform Their Peers Microbusinesses utilising AI are also generating higher revenues and are more bullish on their prospects. One in five (19%) entrepreneurs using generative AI report annual revenues over £100k, compared to 15% of those that are not. Looking ahead, four in five (78%) AI-supported microbusinesses expect revenue growth over the next year, versus three in five (58%) not using AI. Additionally, 60% of entrepreneurs utilising AI anticipate personal income growth, compared to 40% of non-AI users. Microbusinesses Vital To Economic Growth Analysis of Venture Forward data by economic consultancy Frontier Economics demonstrates the importance of microbusinesses to the national economy. Every new microbusiness founded generates five new jobs, through direct and indirect factors. Analysis of microbusiness density, which measures the concentration of microbusinesses against local population sizes, found just a 10% increase in regional microbusiness density correlates to a £320 hike in median annual wages for full-time workers. Andrew Gradon, Head of GoDaddy UK and Ireland commented: “Generative AI may be relatively new, but it’s already demonstrating a sizeable impact on Britain’s microbusiness community. AI has enormous potential, and now we’re starting to see results. Entrepreneurs embracing generative AI are enjoying increased revenue and enhanced business prospects. It’s enabling them to be more ambitious with their plans as they look to scale and take on additional employees." "Microbusinesses are vital to the national economy, generating jobs and increasing wages in their local communities. Our Venture Forward research has demonstrated that encouraging AI adoption is key to ensuring this demographic thrives and can continue to drive growth.”

In an era of fleeting trends and throwaway retail, one Taunton business stands as a remarkable thread of continuity. Hatchers, the family-owned department store nestled in the heart of the High Street, is celebrating a truly astonishing milestone — 250 years in business. Founded in 1775, it’s one of the UK’s oldest department stores and a living, breathing chronicle of British retail history. Paul Andrews spoke to Mark Raisey, the current generation of one side of the two families who continue as custodians of the family business today to find out more. To appreciate Hatchers' origins, you must cast your mind back to a time before income tax, when Lord Nelson was still a teenager and Napoleon Bonaparte a mere six-year-old boy. It was in this historical context that William Hatcher opened a modest drapery shop in Taunton, planting the roots of what would become a multi-generational enterprise. From Drapers to Department Store The story that followed is as rich and layered as the fabrics once sold from its shelves. William’s son, Thomas, became a respected Master Draper, with his son Demas continuing the family legacy. In a charming twist of fate, Demas fell in love with Catherine Blake, a fellow draper’s assistant. Their union not only joined two hearts but also two businesses — the Hatchers and the Blakes, resulting in the formation of Newberry, Blake & Hatcher. By the mid-19th century, the enterprise was thriving at Nos. 12 and 13 High Street. As the family and business grew, so too did the number of staff — a bustling household of 25 souls, including draper’s assistants, apprentices and a porter. By 1883, with the retirement of Rice Blake, the company took on its now-familiar name: Hatcher & Sons. Victorian Expansion and Diversification The late 1800s were a boom time for the firm. New premises were constructed at 54-55 High Street, complete with showrooms, workshops, and delivery facilities. The business diversified, offering everything from mattresses and furniture to a funeral service (established in 1869 with just £136 in capital). In 1898, the business became a limited company, with brothers Henry and Robert Hatcher steering the ship. Expansion continued through the early 20th century — acquiring neighbouring premises, launching new departments and even installing Taunton’s eighth telephone line. Surviving Wars and Welcoming Women By the 1920s, Hatchers occupied an impressive nine shopfronts on the High Street. New services such as removals and a ladies’ hair salon reflected the changing needs of its clientele. In 1928, the company purchased the buildings it had long leased, solidifying its roots in Taunton. Through two world wars and multiple generations, the Hatcher family remained involved, though by the 1960s, leadership began transitioning to professional managers. Yet the commitment to community and quality service remained unchanged. A New Era of Ownership The 1980s brought both threat and opportunity. As national retailers began circling, two long-time directors, Michael Hill and Clive Raisey, stepped in with their wives to buy a controlling stake in the business — safeguarding its independence. Their families remain at the helm today, with sons Mark Raisey and Stephen Hill continuing the legacy. In 2002, Hovelands Ltd — owned by the Hill and Raisey families — acquired the final shares from descendants of the original shareholders, bringing the business fully back into family hands for the first time in over a century. As Mark explains, “I see my role simply as the custodian of this business for future generations. As a family when we completed the MBO we never had any intention of changing the name of the business. Hatchers is the name above the door today as it has been for 250 years and is part of the history of the business, our legacy and essentially our reputation as well.” “It’s not a burden to be at the helm of the family business, especially in our 250th anniversary year when there has been so much attention of the business, notes from the community and inspirational tales of memories from the past associated with our family business. It shows that we are intrinsically part of our community with a proud heritage that continues today.” Standing the test of time for over 250 years is no mean feat, something that many fail to achieve so what is the secret of their long term success? “I am not sure that there is anything specific that we have done over the years that has helped us stand the test of time,” continues Mark, “although we do offer a service that people still want, based on traditional values associated with customer service. It differentiates us as a business and reinforces our uniqueness as a store at the same time.” “Like all retail businesses people are an integral part of what we do and our team are fantastic, many having been with us for years and love being part of our family. Whenever anyone new joins the team we know right away if they are a ‘fit for us’ and ‘get us’ and when they do, we know that they will be with us for the long run too,” he continues. Prior to joining the family business Mark worked for NatWest for nearly ten years and waited for a couple of years post the MBO to make sure that things were settled when he was invited to join the business. “Retail was not in my blood at the time but I have become at one with all aspects of the business and after 36 years have to admit that it is part of the essence of who I am,” he adds. As for the next generation, they have all been encouraged to go away and gain life experience and forge careers of their own but they are also learning skills that can be transferred to roles in the business too. “We will have to wait and see what happens but there may be opportunities for them to get involved and continue the family business into the next generation. We will just have to wait and see how things develop,” concludes Mark. The Store Today Modern-day Hatchers is much more than a department store. It’s a cornerstone of Taunton's identity — a place where generations have shopped, worked and made memories. Whether picking out a wedding gift, furnishing a first home, or visiting the salon, locals continue to rely on this High Street stalwart. As it marks 250 years in business, Hatchers is not simply celebrating its past — it’s looking confidently to the future. In an age of rapid change, this remarkable retailer remains a shining example of resilience, family tradition, and the enduring power of local business. Here's to the next 250 years.

Fire, floods, relocation, and a pandemic couldn’t sink Formans, the family-run smoked salmon supplier. Here’s how they stayed afloat. When I tell people about the fire, the flood, and the compulsory purchase, everyone says, what about the plague of locusts? Well, now we have the plague as well. - Lance Forman, Owner, H.Forman & Son and formanandfield.com Policy analysts have coined the term ‘permacrisis’ to denote an extended period of difficulty arising from a spate of unprecedented and catastrophic global events. From the financial crisis to Brexit, the pandemic to political instability, and global conflicts to economic turmoil, businesses of every kind have had to pivot. But for family enterprises, where the overlap of family and business systems means there is more at stake than financial capital alone, the risk is too great to do nothing. How do organizations stay resilient in an era of uncertainty and what does resilience mean in the context of not one, but several unprecedented and catastrophic events? I recently co-authored a research paper with Celina Smith, Emanuela Rondi, and Mattias Nordqvist that set out to answer this question for the first time. Published in the Journal of Management, the research explores the role of resilience across multiple adversities in family enterprises. H. Forman & Sons is the subject of the decade-long research project. Now trading as Formans, the fourth-generation family business produces smoked salmon for retail outlets, hotels, and restaurants across the world. It is the oldest surviving London smokehouse and is led by the founder’s great-grandson, Lance Forman, who in the last decade has seen the business face floods, fire, enforced relocation, and the pandemic. The paper explores the family’s reaction to each adversity and how they build and rebuild time and time again, getting stronger at every juncture. We use their story to offer research-based best practices for family enterprises to navigate changing parameters, overcome adversity, and build resilience. This meant not only moving out of the newly constructed and purpose-built factory but also out of London due to rising property prices The Plague Of Locusts Lance Forman joined his grandfather’s business as CEO in 1994. Four years later, a fire burned the factory to the ground and led to the rebuilding of a new state-of-the-art facility in Hackney Wick. Within a year of rebuilding, the River Lea burst its banks, causing flooding to the factory. It was a devastating second adversity to face within such a short period. After a six-month battle with insurers and another rebuild, Formans opened its third location in Marshgate Lane in 2001. Once more, the family and the business came back stronger than ever. Having realized the risk of relying on just one business discipline, Lance introduced a new home delivery service – Forman & Field. The business thrived. In 2003, an article was published linking the Marshgate land area to the London Olympic Games, which proposed that if London successfully won its bid to host the 2012 Olympic Games, Formans and more than 250 local firms and residents would face enforced relocation. Within a year, Lance led the Marshgate Business Group, mobilizing affected firms to fight against relocation terms, and, in 2005, London was announced as the winner. This meant not only moving out of the newly constructed and purpose-built factory but also out of London due to rising property prices. The intensity of the adversity would then increase as the firm faced protracted and acrimonious settlement negotiations with the government. In 2007, Formans built another factory, its largest building yet and within five years, the family purchased adjacent land to create a Riviera-style lounge – decentralizing their risk, expanding their business, and capitalizing on the tourism that the Olympics would bring. In 2020, the pandemic hit and Formans was forced to scale back production once again. The family opened a local shop, selling produce for staff at cost price, while online sales for home delivery soared. In each crisis, the family travelled through a cycle of five practices, which we illustrate with qualitative interviews as a perfect recipe for resilience. Organizational Fortitude Surviving one major adversity is an accomplishment, surviving four not only fortified the family but built confidence. The findings show that the Formans learned from each adversity and then applied that knowledge to the next, enhancing a notion that we introduce in this paper; organizational fortitude, which is used to define the propensity of an organization to stand resolute against adversity. In each crisis, the family travelled through a cycle of five practices, which we illustrate with qualitative interviews as a perfect recipe for resilience. It begins with fearing loss before moving into a proactive response of securing resources and entrenching support, fighting the battle, reframing, and then finally, pivoting. The paper offers practical examples of each motion, from questioning the survival of the firm during the fire to mobilizing staff to save documents and equipment from flood water, reframing an Olympic relocation battle into building a narrative in the press and pivoting into new facets of the business such as a home delivery service. The Formans transitioned from being victims of adversity to taking on existential threats and winning. Their story demonstrates that organizational fortitude is essential to creating long-lasting family business success and provides a list of traits, characteristics, and behaviours that are essential to overcoming adversity and building resilience. The family continued to look after their staff throughout each crisis, evident to no greater extent than the shop they opened during the pandemic to offer cost-price perishables to the team. Traits Of Resilient Family Enterprises One of these traits is concentrated ownership. Lance Forman, as leader of the family and business systems, was pivotal as he not only had a heightened sense of responsibility for saving the family legacy but could bring the business and family together. In my experience of working with business families, family ownership concentration spurs family businesses to engage in resilient behaviour when their survival is threatened, which might include granting jobs to the next generation or maintaining family harmony. The firm had a close-knit culture that meant each member was trusted to play a surrogate of the family, allowing Lance, as CEO, to delegate roles and responsibilities while he fought adversity. The more support the firm and its staff received from the family, the more they wanted to reciprocate loyalty and dedication by working longer shifts and even risking their own lives in the event of fire and floods. Shared values are present throughout the Forman story. The family continued to look after their staff throughout each crisis, evident to no greater extent than the shop they opened during the pandemic to offer cost-price perishables to the team. All critical shareholders shared family values, and with each crisis, the firm became bolder, more assertive, and secure in the knowledge that the staff were right behind them. Succession is pertinent too – and increasingly relevant within the shifting demographics of family enterprises today. When the fire destroyed the factory in 1998, Lance’s father, Marcel, was slow to respond. However, Lance was ready to step in and ran into the burning factory to save as much machinery as possible, carrying them through the night to make the next day’s deliveries. The high trust between father and son led to an implicit, uncontested, and seamless transfer of authority. Finally, family enterprises need to be willing to pivot. I have previously written about the paradox of tradition and innovation and how both need not work exclusively. Families can retain their heritage while innovating and pivoting to survive adversity. In fact, it can allow them to thrive. When faced with the third adversity in less than a decade, Lance pivoted. Rather than hiring a surveyor or real estate lawyer, he hired a media lawyer and put all of his efforts into building a media following and narrative – selling a David vs. Goliath image to the press during the Olympic relocation battle. The family learned it was not enough to be passive in the face of adversity but rather, they needed to seize the initiative and be inventive in retelling a story. Every single adversity was leveraged to make improvements, from rising from the ashes and modernizing facilities to expanding the business to capitalize on the adversity from the Olympics, change is inevitable, the question is: is your organization resilient enough to survive it? About The Author - Alfredo De Massis is ranked as the most influential and productive author in the family business research field in the last decade in a recent bibliometric study. De Massis is an IMD Professor of Entrepreneurship and Family Business at IMD where he holds the Wild Group Chair on Family Business and works with other universities worldwide. Access the full paper here  and join the conversation. How does your family enterprise navigate adversity? This article has been reproduced with the permission of the author.

Leading a business in the UK today demands more than just commercial acumen. In a climate shaped by uncertainty, evolving workforce expectations, and rapid technological change, business leaders are navigating a landscape that is as complex as it is competitive. The challenges they face are varied and interconnected, requiring strategic adaptability and strong leadership. 1. Economic Uncertainty and Inflation Pressures Despite some signs of stabilisation, the UK economy continues to present significant challenges. Inflationary pressures have affected supply chains, reduced consumer confidence, and driven up operational costs. While interest rates have fluctuated in response to these pressures, uncertainty remains a constant factor in financial planning and investment decisions. Brexit-related issues further complicate matters. Trade barriers, changes in regulation, and increased bureaucracy continue to affect businesses engaged in cross-border commerce. This has added to the administrative and logistical burdens many companies now face. 2. Attracting and Retaining Talent Workforce dynamics have shifted dramatically in recent years. Skills shortages in key sectors, changing employee expectations, and increased competition for talent have made recruitment and retention a critical concern. Organisations are under pressure to offer not just attractive salaries, but also meaningful career development, flexible working arrangements, and a supportive workplace culture. In particular, younger workers are placing greater emphasis on work–life balance, personal growth, and the values of the organisations they work for. Businesses that fail to adapt risk losing talent to more forward-thinking competitors. 3. Navigating Digital Transformation Digital transformation continues to be a key priority, but it presents both technical and strategic challenges. Many businesses, especially small and medium-sized enterprises, are struggling to modernise legacy systems, integrate new technologies, and protect themselves from increasingly sophisticated cyber threats. The rapid pace of innovation — particularly in areas such as artificial intelligence, automation, and data analytics — requires leaders to make informed decisions about investment, implementation, and workforce training. Success in this area depends on having a clear vision, robust planning, and the capacity to adapt quickly to technological change. 4. Sustainability and ESG Demands Environmental, Social and Governance (ESG) considerations are now a central concern for businesses across all sectors. Regulatory requirements, investor expectations, and consumer demand are pushing organisations to demonstrate clear commitments to sustainability, diversity, transparency, and ethical practices. For many leaders, the challenge lies in embedding ESG principles into core business strategy rather than treating them as separate initiatives. This involves measuring and reporting impact, setting realistic but ambitious goals, and ensuring that progress is visible and credible. 5. Geopolitical Tensions and Global Supply Chain Disruption Ongoing geopolitical instability has heightened risk across supply chains and international markets. Conflicts, trade tensions, and regulatory shifts are all contributing to an environment in which resilience and adaptability are essential. Supply chain diversification, scenario planning, and investment in risk mitigation have become vital components of business strategy. Leaders must balance the need for global reach with the importance of reducing exposure to volatile international conditions. The Evolving Role of the Business Leader In this demanding environment, the role of the business leader has evolved. It is no longer enough to focus purely on profit and growth. Effective leadership today requires emotional intelligence, technological awareness, a commitment to responsible business practices, and the ability to lead through uncertainty. Resilience, agility, and a long-term strategic mindset are essential qualities for navigating today’s challenges and preparing for those still to come. For UK businesses, success will depend not only on responding to the present but also on anticipating the future.

In a world where business often prioritises quarterly profits and rapid expansion, family-owned enterprises stand out. They carry a legacy, a name, and a deep-rooted commitment to people and place. But this legacy brings with it a unique responsibility: the duty of responsible ownership. Responsible ownership goes far beyond holding shares or making strategic decisions. It’s about stewardship — caring for the long-term health of the business, the well-being of its people, and the values that underpin both. So, what does responsible ownership in a family business look like — in practice and principle? 1. Stewardship Over Control Responsible owners see themselves not as rulers, but as stewards. Their role is to protect and nurture the business for future generations — whether those generations are within the family or not. It requires thinking long-term, resisting the temptation of short-term wins that may compromise sustainability or values. It’s about asking: How will today’s decisions affect the company in 10, 20, or 50 years? That mindset reshapes everything from investment strategy to how staff are treated. 2. Embedding Values into the Business Family businesses often emerge from a set of values — hard work, trust, fairness, resilience. Responsible ownership means actively weaving those values into the fabric of the business, from how products are made to how people are managed. These values should not sit as vague words in a mission statement. They must be visible in action: in ethical sourcing, inclusive hiring, transparent governance, and a culture where employees feel respected and heard. 3. Accountability — Even to Family In some family businesses, decision-making is centralised around a founder or a senior family member. While that can bring speed and clarity, it can also lead to unchecked authority. Responsible ownership requires accountability — to the board, to employees, to customers, and, importantly, to other family stakeholders. That means clearly defined ownership structures, transparent financial reporting, and a commitment to fair governance. It also means being willing to hear criticism and make changes, even when it’s uncomfortable. 4. Balancing Family Interests with Business Needs One of the greatest challenges in a family business is balancing emotional ties with commercial decisions. Responsible owners recognise that the business must be managed on merit — not just familial loyalty. Employment of family members should be based on skills, not entitlement. Reward should be performance-based. And when conflicts arise — as they inevitably do — they should be handled with maturity, using formal structures like family councils or shareholder agreements to guide decisions. The best family businesses protect the company from internal politics. They know that family harmony is supported, not strained, when expectations are clear and fair. 5. Investing in People, Not Just Profits A responsibly owned business sees its people as its greatest asset. That means investing in their development, supporting their well-being, and creating opportunities for them to grow within the company. It also means leading with empathy. In a family business, a culture of care often starts at the top — and sets the tone for how every employee feels about coming to work. Responsible owners understand that strong businesses are built on trust, loyalty, and mutual respect. 6. Planning for the Future, Not Just the Present Without a clear succession plan, even the strongest family business can falter. Responsible owners understand that part of their duty is to prepare the next generation — and the business itself — for life beyond their leadership. That includes: Identifying and mentoring future leaders (family or not) Documenting the company’s vision and strategy Ensuring the business is financially robust and strategically relevant Creating structures that support continuity (e.g. trusts, governance boards) Succession isn’t just about passing the baton. It’s about equipping the next person to run the race — well. 7. Giving Back Responsible ownership often comes with a deep sense of place — a recognition that the business is part of a wider community. Many family enterprises are deeply embedded in their local areas and see giving back not as charity, but as duty. Whether it’s supporting local schools, funding environmental initiatives, or helping employees through difficult times, responsible owners lead with generosity and purpose. Because success, for them, is not measured solely in revenue, but in impact. In family businesses, ownership is not just a legal status. It’s a relationship — with people, with purpose, with the past and the future. To be a responsible owner is to embrace that relationship with humility, clarity, and commitment. It’s about building a business that not only lasts, but matters.

Family Business United is delighted to announce the launch of our third Global Family Business Think Tank Report which summarises the thoughts of over 120 leading family business owners, experts and advisers from around the world on specific topics that will help to shape family business discussions and strategies going forward including thoughts on the relevance of the three-circle model, trust, next generation engagement and the potential for conflict to impact family business growth ambitions. Key Findings : As well as the top level statistics that highlight areas that need to be on the family business agenda, we have included quotes from some of the global participants and a number of articles too. 86% of respondents think that the three-circle model is still relevant today. 94% of respondents believe that family conflicts can significantly hinder the growth of a family business. 92% think that family businesses struggle to separate family and business matters. 86% of respondents feel that family businesses are more likely to prioritise long-term stability over short-term profits. 87% of respondents think that the involvement of multiple generations in a family business can create more innovation. Emotional ties in a family business can lead to biased decision making according to 97% of respondents. 100% of respondents feel that building trust within the family is critical to the success of the family business. Only 14% of respondents feel that family businesses spend enough time on long-term strategic planning. Only 24% of respondents think that we have adequately defined what it means to be an effective owner of a family business. As Paul Andrews, Founder and CEO of Family Business United who published the report explains, "We hope that the report enables conversations to take place to bring the family business community together to further innovate, drive changes as a force for good and helps provide further support for families in business to continue to flourish for generations to come." "The aim of the report was to harness the collective voice of the family business community around the world and share their thoughts and comments on areas that are certainly being discussed in family business board rooms and there is certainly plenty to think about and for family firms that are looking to plan for the next stage in their journey, areas that they should, if they are not already, be considering." "This is the third of our Global Family Business Think Tank Reports and not only does it highlight key areas for family businesses to consider, it will prove useful in helping us to develop and deliver further resources, insights and thought leadership pieces to address the areas discussed and enable family businesses to continue the conversation." "We could not have compiled the report without the assistance and participation of our friends around the world and we are immensely grateful to everyone who took the time to share their thoughts with us, contributing to a document that will certainly make a difference too," concludes Paul. Download and read the full Summer 2025 Global Family Business Think Tank here: Furthermore, if you would like further details about the report, wish to supply your insights for the 2025 campaign or are interested in sponsoring the next report, please do not hesitate to contact us .