In a dynamic economic climate, sudden and unexpected change in
the ownership and management of a business is a cause for concern
for both internal and external stakeholders. To inspire confidence
in an entity's long-term prospects and protect continuity and
performance of the business, entities engaged in real estate
business and development must adopt a strategic approach to
succession planning. In fact, one of the most crucial governance
responsibilities of a Board is to implement best practices in the
area of succession planning.
As there is no universal or uniform approach to business
succession planning, numerous factors must be considered including
practical and commercial aspects of the business concerned and
circumstances that are unique to an entity. An effective succession
strategy balances and harmonizes the interests of all stakeholders.
Unfortunately, such efforts are often ignored or improperly
executed. The main issues can be broadly categorized under
