Phil Drudy contributed this piece on behalf of Strategic Equity Advisors.
The greying of America will result in a significant transfer of wealth over the next two decades. More specifically, the transfer of a business from one generation to the next. The orderly transfer of the control of a business has spawned a cottage industry of advisors claiming that if you drink my “Kool-Aid” that all be well with no bumps in the road.
Having been engaged in succession planning for more than 30 years, I can say with certainty that this road is almost never bump-free, and a text-book transition is difficult to achieve. Add to this the inherent differences between the patriarchal generation and the successors – and more times than not you need a translator just to get each party to understand the other. The one thing I have learned is that time cures most ills, so the further in advance you begin your planning the more you can actually minimize the volatility of the current business climate.
Over the next couple of months the team at Strategic Equity Advisors LLP will attempt to lay out a step-by-step approach effective succession planning. Stay tuned…and we look forward to hearing from you if you have a relevant story to share!