Why Should I Plan? The process of answering these questions will generate many benefits. A well designed succession plan will: - Perpetuate an organization that fosters a strong family identity;
- Safeguard the values, goals, and security of the family;
- Preserve the lifetime of hard work of the current generation of owners;
- Allow the family and business to be proactive during the succession transition;
- Pass the business control to the right team of managers and owners while maintaining family unity; and
- Enhance the prospects for the future growth of the company.
Questions to Answer and Issues to Address as you Develop Your Succession Plan:
- Create a summary of key information that can serve as a reference guide for your family and advisors. Could they find key documents and information if you were not around?
- Determine the viability of an internal succession. Identify strengths, weaknesses, and leadership capabilities of potential successors. Who else is capable of running your business?
- Clarify family and business values. What happens when family and business considerations collide?
- Clarify successor criteria. Do you have written guidelines for the consideration, training, and choosing of successor candidates?
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Exit & Succession Strategy Division | Phasecorp Exit and Succession Strategy Services in Chicago and Suburbs |
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 E xit Strategy means different things to different people. Its meaning for you is only limited by your desires and your imagination. I I may mean divestiture of ownership by sale, succession (family or management), ESOP or IPO. Or, it may be an interim transition strategy to expand services or markets, relocate the company, reposition the company in its industry or in another industry, divestiture of non-core businesses, ensure career advancement (by management without ownership interest), etc. W ithout a doubt, it is departure from your present state of affairs to something new and different. It is an evolutionary process in the life cycle of your business and personal endeavors which will enrich the quality of your life and promote an uncompromised and financially secure future. I n many ways, the exit strategy process is similar to building your dream house. You have wonderful ideas of what you want it to look like and the amenities it will contain. S o, what’s the first step? Would you call the trades people together (the mason, carpenter, roofer, electrician, plumber, painter, landscaper, interior decorator, etc.) and say, “build my dream home?” Of course not. For those trades to be effective they require a “blueprint” which specifies, in detail, the part they will play in this process, what is required of them and the date(s) by which their “results” or “deliverables” must be provided. W ho provides this blueprint? An architect, of course—someone who has intimate knowledge of each trade and the regulatory and code requirements that must be met as part of the process. Without the architect, this process is overwhelming and most likely unachievable. Useful links:
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Summary
Phasecorp specialists can help sharpen your competitive edge in most any situation, whether it be mergers and acquisitions, valuations, management consulting, business development, sales and marketing, exit strategies or succession planning. From the city, suburbs and surrounding areas of Chicagoland to Milwaukee, St. Louis, Detroit and beyond, closely held companies like yours are getting results from Phasecorp in such diverse sectors as construction contracting, professional services, retail sales, entertainment, lodging, import/export, manufacturing and more.
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