There are many ways to exit your business.
One of them is to have family takeover. You could let your family:
- buy-in
- buy-out
- or inherit
There are a number of questions you should ask yourself before considering a family takeover.
Are your family members…
Willing?
- Confidential, one on one interviews by a third party really help here. Family relationships often get in the way of straight-talking, unless an independent facilitator helps out.
DON’T LEAVE IT TILL THE LAST MINUTE!
Competent?
Make up a checklist of the management and operational tasks that are:
- Vital – mission-critical
- Important
- “Nice to have”
Ask the family members to self evaluate against the checklists. Then use the results as a basis for discussion and further training. Have competencies objectively tested if necessary!
DON’T PREVARICATE!
Committed?
- We’ve seen a lot of family succession plans fail because the next generation just doesn’t have the passion that you do for the business.
- Sometimes working outside the business, even overseas, will rekindle the passion and commitment.
DON’T LEAVE COMMITMENT TO CHANCE!
Managers?
- There are some really big issues with “2nd generation” takeovers. Attitudes and expectations can get in the way of effective staff management and any ‘change of guard’ always creates tensions.
- Use tools such as psychometric profiling (Extended D.I.S.C) very early in the process. These map out behaviours and relationships for individuals and the team.
SORT OUT THE ISSUES BEFORE THEY EVEN START!
And what about your emotional attachment to the business?
Are you…
Willing to let go?
- Confidential, one on one interviews by a third party are beneficial to this process. Family relationships can prove to be difficult where both the current owner and family member have differing views on future business direction and how it is going to be managed.
DON’T UNDERESTIMATE THE EMOTIONAL EFFECTS OF CHANGE!
Going to retain control?
- Attitudes, expectations and emotions can get in the way of effective management and result in unwanted tensions.
- Use tools such as psychometric profiling (Extended D.I.S.C) very early in the process to identify potential differences and conflict before they arise and develop a plan to counter these differences.
SORT OUT THE ISSUES BEFORE THEY START!
Whatever you decide, the advice you will receive from ABL will be invaluable for your exit strategy. Contact us and we will put you in touch with the best advisor for your business. Advantage Business Advisors are with you every step of the way.
