Succession Planning

• Does the founder want to retire and can he let go of the reigns?
• Do the family want the responsibility of carrying on the business?
• Can they afford to buy it?
• Have they the ability to run it?
• How will the business be structured if there are several working family members?
• Has any individual been groomed for the founder’s position?
• What are the tax consequences of a change of ownership?
• Would the business succeed if the person in charge were to die unexpectedly?

Once satisfactory answers are found to these questions, then succession planning can commence.

Business owners then need to employ their accountant, solicitor, an experienced mentor, or a person outside (but in conjunction with) the family to assist in developing a plan and developing a proactive approach to their succession.  The most important component of this however, is timing. This can be a slow and delicate process which may take several years to expedite.

Passing the business on from one generation to the next requires careful due diligence because the consequences could be disastrous, not only financially, but from a family harmony perspective.

Unconditional loyalty, training and support to my succeeding family are paramount to its success. And importantly, I found something else to do. I decided to write a book and become a corporate business speaker and share my experience with others. Reinvention not retirement became my quest.

Barry Bull www.barrybull.com