We have proven methodologies in working with enterprises and business owners in customizing succession plans and exit strategies that result in minimal adverse impact and increases enterprise values and organizational performance. In addition, we find that the culture of the enterprise and business is often enhanced through the successful execution of our plans. In family businesses, this oftentimes results stronger family and employee relationships and individual growth, and ultimately, a stronger legacy and quality of life.
Every executive leaves the company at some point. Corporate executives move on to other opportunities. Business owners at some point exit their company; sometimes passing it on to the next generation or corporate leadership, or via some form of sale. Yet in our decades of experience, very few have well planned succession or exit plans. This is human; most people are adverse to thinking about their exit just as very few like to think about planning for our death. Yet the lack of effective planning may leave corporate enterprises suddenly weakened in key competitive leadership arenas. Business values may significantly drop due to owners leaving the business for various reasons (health issues, burnout, change in life circumstance, etc).
In some situations, there may be a succession plan, but again, in our experience, while sometimes the “successor(s) are identified, insufficient (or no) preparation has been done to adequately prepare them for the higher senior leadership role. As a result, in enterprises, the successor executive may be significantly weaker than the predecessor leading to a reduction in business efficiencies and effectiveness, or sometimes a further exit of personnel (including the successor themselves). In privately-owned businesses, if the business owner maintains ownership, the value of the business (which typically represents over 50% of the business owners’ net worth and often represents their retirement) plummets, sometimes leading the business owner to come out of retirement.