This post is a summary of a wonderful post on my friend RJ’s blog…
1. “Make it a family affair”…
If you have a family held company, include your family members in the discussion early on … don’t leave them in the dark. It will only create hard feelings and ill will later on.
2. “Your succession/exit planning team will not fit into the company Mini Cooper”…
Simply consulting with an attorney and CPA is not enough advisor “firepower”. There are specialist firms skilled in facilitating these conversations that have helped many others before you.
3. “You get what you pay for”…
Don’t go cheap. It will cost money to have a diversified team around you to give counsel and wisdom … and it will save you 10-20 times over their fees, if not more.
4. “Begin your planning last week”…
Vistage, the noted business coaching firm, challenges all of its members to regularly decide what their exit plan will be. The best-selling author and business consultant Steve Covey puts it this way.” Begin with the end in mind”.
5. “Will the last person left please turn off the lights?”
You cannot get the optimal price for your company, or know that it will continue successfully moving forward if you are not training and growing your key management team that will be left after you exit. If there is no one left behind that has been involved in the company growth and management, it likely means no sale, or receiving a fraction of what you might have received.
6. “Don’t stop going to school” …
7. “Let it stew” …
It generally takes 3-5 years to create a successful transition team and pass the baton.
8. “Pardon me, but is that a bulls eye on your chest?”
Understand that the more successful you become, the greater the chance of becoming someone’s next target for unwarranted litigation. Be prepared.
9. “Don’t be an ‘involuntary philanthropist’”.
Many of the taxes associated with the sale and transfer of a business can be mitigated or avoided completely if proper planning is done. The bottom line here is you can “do well by doing good”.
Read the full article here –
- Family Business — Your Most Important Issue — Successfully Passing It On! (forbes.com)
- Are You One Of The 88% Of Business Owners Without An Exit Plan? (sukimudan.wordpress.com)
- The Family Business FORUM – Larry Klar (lugenfamilyoffice.com)
- How to Begin Succession Planning (corporationcentre.ca)
- Boomer SMEs need to plan for succession (business.financialpost.com)
- Succession Plans Important for Family Businesses (lawprofessors.typepad.com)
- Estate and Succession Planning (thesuccessfulboomer.wordpress.com)