Succession Planning
Planning for the Future
ASL supports optimal succession planning with high-level ideas, evaluating alternatives, and assisting with family dynamics in carrying out the plan.
Many companies think of succession planning too late to be of much real value – waiting until an immediate need or a crisis. By planning for succession, you can:
- Increase the value of your company
- Enhance management performance
- Improve employee retention and strengthen employee commitment
Everyone Wins!
Did you know that more than 70% of family-owned businesses do not survive the transition from founder to second generation? In most cases, the causes relate to tax obligations or family discord. We can address these issues, along with others, with a family business succession plan.
Succession planning anticipates the eventual need to replace key leaders in the company and focuses on grooming and training specific individuals to take on management roles at the appropriate time.
A Succession Plan Includes:
- Demonstrated commitment to the future success of the business
- A well-conceived and timely transfer in the event of a crisis
- Independent, neutral party assessment to assist with enhanced communication between the generations
- Evaluation and recruitment of potential successors
- Help in determining an agreeable price for owner’s shares
- Life insurance or ESOP funding plans implemented well in advance of the need
- Contingency plans that anticipate various tax scenarios through “what if” planning and tax projections
- Clear career paths for employees to help recruit and develop future leaders
Questions to Ask Yourself
At least 5 years before you’re ready to retire, in order to provide appropriate training to the future leaders.
Always plan for a rainy day. Have plenty of cash reserves. When making decisions, be sure to balance the risk with the reward.
Through transparency, communication, empathy, and gratitude. Employees feel engaged if they know what’s happening with the company and how their efforts are translating into successful results. Sharing key information empowers them to contribute to the growth of the company.
