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Can you simplify transition by splitting the farm into two corporations?

Reference: FCC

The following is a fictional case study created by MNP.

Darlene and Ian started transition planning when they turned 50. At the time their two children, Glen and Amy, were in university and had no idea if they would come back to the farm. Ten years later, both children committed to return to the farm full time. They had both been very active in the farm as youngsters but had been encouraged to take some time away after graduation to explore work and have other experiences before making a decision about farming.

Now in their late 20s, both Glen and Amy have been ramping up their involvement in the family business for the past five years. They were doing well, and with oversight from their parents had settled into a division of tasks and responsibilities. But Dad and Mom still ran the show and the kids wanted more ownership and autonomy.

Logical division of duties
Like many sibling relationships, Glen and Amy had each other’s backs but they did get into some heated arguments. It was not always optimal for them to be working shoulder to shoulder. It was better if they had separate tasks and if they needed help, they could ask for it. The relationship between Amy and her Dad was different than how Glen and Ian interacted. Amy was quick to defer to Dad’s opinion whereas Glen often challenged Dad and wanted to go his own way.

Amy’s personality was to get up and get at it. She liked the daily challenges, solving problems and getting things done. She was also very good with employees and keeping the team on track. Glen was more analytical and tended to spend more time on budgets, marketing and planning. They had complimentary skills, but they definitely came at things from different perspectives.

Darlene and Ian were very pleased that both children were showing the work ethic, management skills and commitment to the farm, but they did worry about the long-term realities of the two kids working together. With Glen planning to marry his long-time girlfriend in the coming year, there would be new dynamics and relationships at play... Read More