Succession planning keeps your company focused: Taking a closer look at the business and its needs today as well as into the future can help keep the goals of the company clear and in the forefront of the leaders’ minds.
Succession planning helps you take a second look at many aspects of your company: It is important to look at all the parts of your company as well as all employees when creating a succession plan. This review could help catch problem areas that you may not have thought about before and pave the way to a smooth transition.
The future is unknown: Opportunities (and threats) abound and it is impossible to know exactly what can happen that may directly affect your company. To capitalize on the opportunities (while avoiding the threats), it is very important to start a succession plan sooner rather than later.
So What is a Succession Plan?
As defined by M&A Source (www.masource.org), in a succession plan for a privately held business, ownership transfers from exiting owners to active family members, managers or outside shareholders. In a Bloomberg Business article it states that about 40% of U.S. family-owned businesses successfully get passed down to the second generation. Good facilitators are particularly sensitive to estate planning issues, family business dynamics and the need for discretion and trust to make these transactions seamless and successful. Succession planning has many components that include business planning, estate planning and exit planning.
Myths of Succession Planning for Small Businesses
How Do You Begin Succession Planning?
Now that I am Thinking about my Succession Plan, What Comes Next?
Part II of this Spotlight Series is now available; Spotlight: Exit Planning
SealedBid’s Role in Succession Planning
SealedBid is proud to have successfully served clients for over 20 years with M&A Advisory, Recapitalizations, Succession/Exit Planning, Family Transfers and Management/Partner Buy-outs. As a boutique firm, SealedBid engages in a limited number of projects at any given time to ensure we deliver the highest level of senior attention, expert advice and transaction experience to each client. Our experience, knowledge and attention to detail are crucial to successful succession planning.
As you begin to develop your succession plan, remember that SealedBid has the experience, knowledge and expertise needed to successfully guide a transaction, family transfer or management/partner buy-out.
If you are interested in learning more about SealedBid, our services or our team, please do not hesitate to contact us at (952) 893-0232. SealedBid will work closely with you, your financial advisor, attorney, accountant and banker from the initial stages of pre-marketing through closing and post-closing.
In closing…remember to write your succession plan long before you need it, so when the time comes to act, the terms and conditions are already defined and agreed to by all parties…