The Missing Piece: Succession Planning
If “succession planning” were more plainly described as “the rest of your compensation,” advisors might take more notice. But we continue to speak of succession planning in abstract, faintly altruistic terms such as “passing on your legacy” or “ensuring continuity for your clients.” And while all of these are legitimate interests, they don’t motivate in the same way self-interest does.
Of course, succession issues arise with every business, but they’re more personal and are subject to more emotions in an entrepreneurial, closely held, professional services firm. Succession planning addresses how a person or group of people can pass on the business to another. And while that may seem like a lofty and altruistic goal, it is really the means to an end-for owners to realize a significant amount of value from their business.
See The Missing Piece, by By Brian S. Hamburger and Alan N. Walter
Tags: succession planning, valuation
