Succession is a key issue and one that family firms struggle with, and it goes without saying really, although helps to reiterate the point in question, those families that engage in open conversation and plan for the future, have a greater chance of a smoother transition of ownership.
Easy to say, but way harder to implement!
One of the surest ways to derail a profitable business is failing to plan for its continuity. “A good company can fall apart if you don’t have the right people stepping in to take it and run with it,” says Chris White, founder of Corporate Performance Group, a business management consulting firm in Tulsa. “If it’s a family business and you’re putting together a succession plan, the focus is trying to get the next generation ready to run the company. If you are a larger company and you are doing a true succession plan, the first step is to determine whether you have anyone in the company who could be groomed to be a successor. If not, you are going to have to go outside and bring somebody in.”