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Succession Planning: Lessons from a Business Transition
As a business coach, I recently had the privilege of guiding retiring parents through the process of transitioning their business to their children. Succession planning is a complex journey that requires careful preparation—often taking a year or more to execute effectively. It also demands a strong network of professionals, including accountants, attorneys, and other logistical experts.
Throughout this process, I realized that my association with OVF provided me access to trusted resources, making facilitating a smooth and successful transition easier. Here are some key takeaways from my experience...
Key Insights on Business Succession Planning
- New owners may not be fully prepared for the workload. Many responsibilities happen behind the scenes, and the transition can be overwhelming without a clear understanding.
- A structured growth plan is essential. The new owners need a well-defined strategy to ensure business continuity and expansion.
- A strong support system is invaluable. Having mentors or advisors available for guidance can help the new owners navigate challenges effectively.
- Tax implications must be addressed early. A CPA should be involved to help the exiting owners understand and manage the tax impact of the buyout.
- Leadership roles should be clearly defined. A solid leadership team must be in place before the transition, with well-established roles and responsibilities for the incoming owners.
Successful business succession requires both strategic foresight and the right resources. With proper planning and support, business owners can ensure a smooth transition that benefits both generations and secures the company's future. Remember, as an OVF member, you have access to a large network of resources who can help you move forward! I look forward to seeing you in Tulsa for the March Power lunch.
Kind Regards,
Gina Bertoletti
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