Case Study No 2 – Business Succession Planning 01
A diversified Group with interest in Pharma, Retail and Electronics. Business spread across pan India and few international geographies. Listed companies held through a matrix of Pvt. Ltd companies, HUFS & individual name. The clients were looking at a structure to consolidate the assets and avoid any future litigation.
Family Tree:
Business Assets – 123 Group:
- 123 Pharma Ltd
- ABC Distribution Ltd
- 123 Ltd.
- Group Sales 2009-10 Rs. 3500 crores
- 3 Listed companies PAT Rs. 65 crores
Promoters:
- Son 1 – Chairman
- Daughter – Managing Director
- Son 2 – Director
Personal Assets:
- Assets Held jointly by Son 1, Daughter & Son 2
- Business Properties in India
- Business Properties outside India
- Residential Properties
- Shares in companies
- 52% ownership in listed companies
- Investment in financial assets
- Jewelry
- Art
- Mutual Fund / Fixed Deposits
Objectives:
- Properties used for business to be transferred to business.
- Personal Properties to be owned in individual name.
- Succession Planning
- Business Continuity
- To be build a multi-Generational Business Model
- Financial Support to the family members in case of demise
- Children Education and Marriage Planning
Proposed Structure – Stage 1:
Proposed Structure – Stage 2:
- Intra Family Share Holders family
- Dividend policy
- Employment Policy
- Remuneration Policy
- Charity/ philanthropy policy
- Education, Training and development policy
- New business policy
- Family Budget Policy
- Investment Policy
- Exit Policy
