Succession of a family member or a key employee has its advantages. They know the business, product or service, employees, customers and suppliers. Succession can not be successful in the business plan for the owner of the production if it ensures that the succession is carefully selected, trained and groomed for the position. The owner must be careful not to make an emotional choice of a favorite relative or employee, but instead of choosing his successor with the right skills to lead the company in the future. You do not want an ‘employee’, but a mentality of “owner” mentality. If this person can rarely be found in companies that can make the transition to the owner, often have the money to buy the company. It is also likely to want to pay less for the same company that familiarity does not prevent them from seeing a large number of drivers of company value. Thus, although the notes can be successful operational, it is rare economic success for the outgoing owner.
Posted on January 12th 2010 in Business
