Management Transition Plans - What You Need to Know
It has been said that management transition plans should be built into a business plan; but who?s ready to think about exit strategies before an organization is even off the ground? The concept is really not that preposterous...the more thorough the management succession plan, the smoother the transition and the happier the retirement!
Consider the Following for Your Management Succession Plan:
- Allow at least ten years for the development of your succession plan
- Consult a professional who can assess and advise on tax implications
- Involve all stakeholders in preliminary discussions about your management transition plans and throughout the process
- Ensure the necessary documentation is in place and reviewed often; this includes wills, trusts, titled assets, insurance, liquidity plans, management succession plans, ownership succession plans, etc.
- Make decisions that benefit the business as well as your family members; some executives get caught up in the idea that everyone needs an equal share and the best interests of the business get lost
- Be very thorough with the successor selection process and spend time in focused leadership development
- Develop contingency plans in the event of death
Find All the Transition Management Tools You Need at ABFI
The Alberta Business Family Institute offers programs, seminars, mentoring and other transition management tools that can help you achieve your long-term goals for your business and your family. Contact us today to learn more.