Succession planning is a hot topic especially for baby boomer shop owners and for the aspiring entrepreneur who is looking to purchase a successful shop. There is much to consider to prepare the business for the next generation or to find a qualified internal or external buyer. This episode covers a lot of ground to include the experiences of our guests. Listen to an expert, a shop owner who has completed his succession plan and a CFO who is working on a third generation succession plan.
Like all panel discussions this is an extended interview; packed with great information and experiences. You can listen to the audio only or the Face To Face video; you choose.
Find out why it is important to build a perpetual business, one that succeeds yourself and can run without you. Bob Ward says this strategy takes the stress out of the future and must be in place if ever a tragedy occurs or when it is time to sell.
Learn that having pristine financial statements is important; if you are selling or not.
Learn how much weight a buyer puts on stability and experience in your team.
Trust between members of the facilitation team, the buyers and sellers is critically important.
Here are a few stats on succession within a family business:
88% of current family business owners believe the same family or families will control their business in five years.
Succession statistics undermine this belief. According to The Family Firm Institute, only about 30% of family and businesses survive into the second generation, 12% are still viable into the third generation, and only about 3% of all family businesses operate into the fourth generation or beyond. There is a disconnect between the optimistic belief of today’s family business owners and the reality of the massive failure of family companies to survive through the generations. Research indicates that failures can essentially be traced to one factor: an unfortunate lack of family business succession planning.
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