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ABOUT THE AUTHOR
i ii iii iv I-7
Ravi Mamodiya
CONTENTS PAGE Foreword I-5 About the Author I-7 Preface I-9 Acknowledgement I-11 Prologue I-13 PART I SUCCESSION INITIATION Chapter 1 Succession Foundation 3 Chapter 2 Types of Succession Planning 5 Chapter 3 Myths vs. Facts 7 Chapter 4 Succession Planning according to SEBI 11 Chapter 5 The Great Indian Family Business: Benefits and Challenges 14 I-15
Chapter 6 Conflicts of Interest in Family Business Management 20 Chapter 7 Breaking the Glass Ceiling: Overcoming Gender Bias in Succession Planning 24 Chapter 8 From Founder to Successor: Navigating Succession Planning for Female Entrepreneurs 27 Chapter 9 Passing the Torch: Succession for Startups 29 Chapter 10 The Life Cycle of Succession 34 PART II SUCCESSION PREPARATION/REHEARSAL Chapter 11 Garud View vs. Sarp View 41 Chapter 12 As Clear as Crystal 43 Chapter 13 Guiding Principles for Succeeding with Succession 45 Chapter 14 Strategies and Approach to Succession Planning 50 PAGE I-16
Chapter 15 The Wheel of Succession 57 PART III OWNER’S VISION Chapter 16 Visualising the Vision-Internal 63 Chapter 17 Visualising the Vision-External 68 PART IV THE FAMILY CONSTITUTION Chapter 18 The Purpose of a Family Constitution 77 Chapter 19 A Step Before Family Constitution 82 Chapter 20 The Family Constitution: A Tool for Family Governance 84 Chapter 21 Steps for Building the Family Constitution 91 Chapter 22 Drafting the Family Constitution 95 Chapter 23 Challenges in Constitution Building 98 PAGE I-17
PART
ALIGNING THE FAMILY AND THE BUSINESS Chapter 24 The Three Circle Model 107 Chapter 25 Parallel Planning Process 111 Chapter 26 Guiding Principles for Family Succession Planning 114 Chapter 27 Contingency Plan 121 PART VI SUCCESSOR IDENTIFICATION AND GROOMING Chapter 28 Identifying the Leader 131 Chapter 29 The Three-step Model: Assessment, Management and Grooming (AMG) 137 Chapter 30 AMG - Step 1: Assessment 139 Chapter 31 AMG - Step 2: Management 144 Chapter 32 AMG - Step 3: Grooming 147 PAGE I-18
V
Chapter 33 Selecting the Successor 152 PART VII OWNERSHIP TRANSFER & ESTATE PLANNING Chapter 34 Mapping Out Estate Planning 163 Chapter 35 Type of Estate Succession 165 Chapter 36 Intestate Succession in Hindus: One Without a Will 167 Chapter 37 Intestate Succession in Muslims: One Without a Will 179 Chapter 38 Intestate Succession in Parsi: One Without a Will 185 Chapter 39 Intestate Succession in Christians and Others: One Without a Will 191 Chapter 40 Intestate Succession Process and Role of Domicile 202 Chapter 41 Succession Certificate 207 Chapter 42 Testamentary Succession: One with a Will 211 PAGE I-19
Chapter 43 Taxation of Intestate & Testamentary Succession 219 Chapter 44 Private Trust 222 Chapter 45 Hindu Undivided Family 247 Chapter 46 Breaking Some Other Myths 253 PART VIII SUCCESSION IN THE SERVICE INDUSTRY Chapter 47 Definition and Difference between Service and Business 261 Chapter 48 Next Steps for Successful Succession Planning 266 Chapter 49 5-step Approach for Succession in the Service Industry 268 Chapter 50 Succession in Corporate Practice vs. SME Practice 271 PART IX EXIT STRATEGIES & LEGACY PLANNING Chapter 51 Exit Strategies 277 PAGE I-20
52 Role of Family Business in the Growth of India 282 Chapter 53 Understanding Gen Z Mindset 285 Chapter 54 The Crucial Role of Liquidity Management in Family Businesses During Transitions 287 Chapter 55 Family Office - A Tool to Continue the Legacy 294 PART X CASE STUDIES & FAQs 301 318 ANNEXURES Annexure 1: 343 Annexure 2: 352 Annexure 3: 353 AFTERWORD 357 PAGE I-21
Chapter
-CHAPTER 14 Strategies and Approach to Succession Planning 50
Figure-2
FIVE-STEP APPROACH TOWARDS FAMILY SUCCESSION PLANNING
Vision
51
Family Constitution
Aligning the business & family strategies
Identifying & Preparing successors and Leadership transition
Estate Planning
52
THREE-STEP
Identifying & Preparing Successors for Leadership
Figure-3
BUSINESS SUCCESSION PLANNING Vision -
APPROACH TOWARDS
53
FIVE-STEP APPROACH TOWARDS SUCCESSION PLANNING FOR PROFESSIONALS
Estate Planning
Figure-3A
54
Vision -
Alignment with the Partners and the Existing Team
-
Family Structure and Alignment
-
Estate
55
Successor Identification and Grooming
Planning and Exit Strategy
56
Business Succession Planning
AUTHOR : RAVI MAMODIYA
PUBLISHER : TAXMANN
DATE OF PUBLICATION : APRIL 2024
EDITION : 3rd Edition
ISBN NO : 9789357788632
NO. OF PAGES : 384
BINDING TYPE : PAPERBACK
DESCRIPTION
This book provides answers to the readers' primary questions about succession, i.e.
• Where to begin?
• The ways to implement
Rs. 795 | USD 11
The sole purpose is to help the reader understand the basics of succession in a simplified manner. It will be helpful for professionals and business owners to understand the critical aspects of succession planning and create strategies for better business continuity planning.
The Present Publication is the 3rd Edition, authored by CA Ravi Mamodiya, with the following noteworthy features:
• [Five-Step Approach] to handle the wheel of succession to plan, manage and see the expectations
• [Technicalities explained in a Simple Manner] To avoid getting caught in the web of laws & rules, the author has presented the technicalities suited for a layperson, too
• [Diagrams, Charts, Case Studies & FAQs] are embedded in the book to help the reader to gain better insights on the topic
• [Summaries] Each chapter consists of key takeaways to revisit the learnings and remember the important points to solve the readers' doubts and provide clarity
• [Authors' Personal Experience] with different clients, including those faced amongst family, friends, and relatives, are included in the book to help the reader grasp the practicalities and realities of day-to-day life
• [Discussion on Estate Planning] which includes:
o Indian Succession Act
o Hindu Succession Act
o Shariat Law
o Private Trust and its Law, along with the applicability of the Income-tax Act in different situations
o Creation of HUF & its Taxation
• [Liquidity Management] This book covers the cruciality of liquidity management during the transition of generation and adoption of various exit strategies. It provides practically implementable tools to continue the legacy. It clears out the basic queries through FAQs and checklists to help the reader summarize and understand the succession in the best possible ways.
Reviews
Shivram Sethuraman | PGDM IIM Lucknow
Independent Director Apollo Home Healthcare Ltd. | Ex-Director – Deloitte Human Capital Advisory Services
"I found this book fruitful for all business owners to help them create a roadmap for a smooth transition of power from one generation to the next.
The simplicity of this book allows any kind of business owner to create a succession plan and, most importantly, guides towards how to execute such a plan practically.
The author explained the concepts very well with relatable practical examples.
The 'Five Steps' approach, which he discusses in the book, brings absolute clarity on the continuity process and draws out a clear pathway for succession."
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