Succession Planning

Other private sector organizations fare
less well, in large part because they haven’t
put their mind to the issue, at least not
recently. Some of that preparation is prac-
tical, noted Bryan, and some is painting
a picture of the future. “Making sure the
appropriate tax, ownership transfer, insur-
ance, and financial issues have been ad-
dressed is a significant first start. However,
also talking through who takes over for the
person who is injured, incapacitated and
killed, talking about what that looks like
and what must be done to prepare the ‘suc-
cessor’ is all important.”
Bryan recommends that business own-
ers and their advisors examine these is-
sues from the perspective of other stake-
holders, such as customers, suppliers,
and financial backers. How would they
view the plan—or lack of a plan? It is
also important to talk about whom you
are placing your trust in and if it is well
placed. Bryan’s file of “horror stories” he’s
dealt with includes a business owner who
died unexpectedly, leaving the shares
of his company to his wife, who had no
knowledge of the company’s operations.
One of the couple’s advisors persuaded
the wife to take over running the busi-
ness. He shouldn’t have. She did not
have the knowledge or the skills, which
was evident as the business went down-
hill quickly.