Meeting the Challenges of Succession in the Family Firm

Meeting the Challenges of Succession
in the Family Firm

by Thomas Davidow and Richard Narva

Succession from one generation to another does not happen by accident in a family-ownedbusiness.If you are interested in succession or the continuity of your business, you mustunderstand that planning for that continuity is the critical factor.We believe the failure toadequately address the topic of succession is the primary reason that only 30% of familybusinesses continue into the second generation and that only 10% more continue into the third.

Succession exists as an underlying issue in all family firms, playing a tremendously importantrole in the life of the family, as well as the life of the business.Yet owners and operators offamily enterprises rarely address succession, apparently because of its powerful psychologicalimplications, which can sometimes be overwhelming. More…

Creating a Strategic Contingency Plan

Creating a Strategic Contingency Plan Baylor

Legacies Newsletter

As a business owner or manager, you probably spend too much of your day making decisions regarding marketing, employee relations, inventory, hiring/firing, payroll, banking, and litigation. Yet, how much time do you devote to creating a Plan of Action that takes place in the event of your unanticipated death?

Wait!–before you move to the next article thinking this is only another boring insurance discussion–read on. In its highest and best use, insurance is designed to deal with unanticipated death; but it only provides the funding for a plan if one is in place.

That’s where Strategic Contingency Planning comes in. More…