Securing Your Business for the Next Generation
Succession planning is always a hot topic in the CFBC community - and for good reason. It is important to keep this vital part of business in discussion so it's never overlooked. Life can change in the blink of an eye so it is necessary to have a plan in place just in case surprises are thrown your way. Jonathan Michael of Burke, Warren, MacKay & Serritella shares his insights on succession planning:
Benefits of Succession Planning
Without a clear plan in place, businesses invite chaos. In the event of the owner’s untimely death or disability, the business is left without clear leadership and may find itself mired in “management by democracy” with no clear leader, or embroiled in costly litigation for control of the company. This disarray could cause turmoil in the family and reduce the value of the business. It may even create an opportunity for competitors to hire away key employees or purchase the business at a discounted price. A well-crafted business succession plan provides a host of important benefits for the company’s owners, employees, and family members.