Dohr Family Business Consulting, LLC

Building Value and Harmony for Business Transition

Ownership and Management
Succession

What is your exit strategy? Who is going to succeed you? Is your dream to see your next generation take over the business? Did you know that the percentages are very low for family businesses successfully passing the business on to the next generation? What is your plan to optimize your return for your hard work and efforts, and see your business succeed and grow? Will you be able to afford to retire? Do any of these questions cause you alarm?

The transfer of equity, management responsibilities, and authority between generations is an especially difficult threshold for the family to cross. Success beyond the first generation rests on the successor's ability to effectively be developed so he/she can lead, generate support and direction for members of management, and to build trust throughout the family and the business.

The bottom line is this: Whether you plan to transition the business to the next generation or sell your business, there can be enormous implications for you and your family, for your employees, and even for your customers and suppliers. Such decisions affect your personal and estate goals, taxes, management succession, and family issues.

Symptoms to Look For

• Issues of competence and entitlement with heirs
• No planned exit strategy or formal succession planning process
• Not tending to your family needs and interests
• Lack of formal governance
• Confusion over ownership versus management
• Not building a business with transferable value
• Difficulty managing family dynamics and conflicts
• Owner/operators that can't let go
• Conflict between individual needs, family dynamics and business requirements
• No strategic plan to ensure future enterprise success

Are You Prepared?

• Have you identified the critical management succession issues?
• Can you afford to retire?
• Have you positioned the family business for an orderly transition?
• Does the business strategy drive value or personal income?
• What will be the impact on the business before and after transition?
• What is your vision of what you want for the family business?
• What are the emotional and human issues that must be considered?
• Will you be able to let go when the right time comes?
• Are there issues of confidence, commitment and competence with the heirs?
• Do you have the right hiring, retention and reward practices in place to support your business growth?