Expertise
Corporate Succession
Succession is a transition, not a single event.
Latitude advises businesses and shareholders on succession situations where ownership, continuity, governance and strategic direction need to be considered together.
More than a change in ownership
Corporate succession often begins long before a transaction takes place.
Shareholders may need to consider future ownership, management continuity, family or partner interests, strategic alternatives and the direction of the business over time.
The appropriate outcome is therefore not always determined by price or transaction structure alone.
Latitude approaches succession as a broader strategic transition.
Clarifying objectives
Different shareholders may have different priorities.
Some may favour continuity of ownership. Others may seek liquidity, a strategic partner, a management transition or a full change of control.
Before considering transaction alternatives, we seek to understand the objectives behind the succession question.
Clarity around those objectives creates the foundation for a more disciplined process.
Considering the alternatives
Succession can take many forms.
Depending on the circumstances, alternatives may include:
transition to the next generation
management succession
shareholder reorganisation
partial or complete disposal
acquisition by a strategic or financial buyer
introduction of a new partner
business combination
staged ownership transition
retention of ownership with revised governance
The appropriate route depends on the business, its shareholders and the longer-term objectives involved.
Continuity and change
Successful succession often requires a balance between continuity and change.
A business may need to preserve valuable relationships, culture, knowledge and management capability while also adapting to a new ownership or governance environment.
These considerations can materially influence timing, structure and the choice of counterparty.
Governance through transition
Ownership change can create new governance requirements.
Responsibilities between shareholders, management and boards may need to evolve as ownership passes from one structure to another.
We believe governance should be considered early in the succession process rather than addressed only after a transaction has been agreed.
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Preparing for a transaction
Where succession leads to a sale, acquisition or other corporate transaction, preparation becomes particularly important.
This may include clarifying shareholder objectives, assessing potential counterparties, considering structure, identifying dependencies and coordinating appropriate professional advisers.
A well-prepared succession process can materially improve both execution and the durability of the eventual outcome.
Long-term consequence
Succession decisions can shape a business for many years.
Ownership, management, governance and strategic flexibility may all be affected by choices made during the transition.
Latitude therefore considers succession not only in terms of what can be executed, but what is likely to remain coherent over time.
