Is an exit on the horizon for your business?\u00a0 If so, are you prepared? And, what is Succession Planning?<\/p>\n
Have you thought through your options for a successful transition?\u00a0 Do they include a transfer to a family member, a management buyout, or a strategic\/financial buyer?\u00a0 These options take considerable\u00a0time<\/strong>\u00a0and\u00a0planning,<\/strong>\u00a0and typically require outside help.\u00a0Time<\/strong>\u00a0and\u00a0Planning<\/strong>\u00a0are the operative words; think years \u2014 not months.<\/p>\n There are three primary areas where owners call on outside advisors for succession planning assistance\u2014legal guidance, financial support, and leadership transitions.\u00a0Just 30% of family businesses survive the transition from the first to the second generation, and by the fourth generation that number falls to just 3%.\u00a0The key cause of failure, according to the U.S. Small Business Association, is a lack of succession planning.<\/p>\n Having devoted a substantial portion of their lives to building a business from scratch, some business owners are reluctant to face the fact that they will eventually have to hand over the reins if their companies are to go on without them. Others may be hesitant to make certain hard choices, such as whether to pick a grown child or a long-time employee who is not related as their successor. Furthermore, small-business owners tend to be very busy people, and many figure they don\u2019t have the time to address certain long-range issues.<\/p>\n Mark Metzler, a Director with Kreischer Miller and a specialist for the Center for Private Company Excellence, illustrates four reasons why Succession Planning Matters:<\/p>\n DVIRC excels in supporting company leaders as they look to transition their businesses. We ensure there is a team in place with the qualifications needed to replace the owner, sustain the business, and provide business metrics that support a competitive evaluation.<\/p>\n Your business has more value with a strong team in place and less dependence on you.\u00a0DVIRC helps by providing an outside perspective, working with leadership to identify the key initiatives that will raise the value of your business, and determining an action plan to ensure the correct leadership is in place moving forward.<\/p>\n\n