Succession planning is a crucial yet often overlooked aspect of running a family business. Having worked closely with families over the years, I have seen first-hand the challenges that arise when there is no clear plan for the future. This article from Vistage Worldwide offers valuable insights for business owners looking to secure their legacy and ensure a smooth transition for the next generation.
This will be one of the key topics in our upcoming webinars for our investors because what is more exciting than debating gold and cryptos? I work with advisors who are experts in this area, so expect some insightful and possibly entertaining discussions ahead.
Here is a section:
When Carrie Meek-Cuneo was born, she automatically became a fourth-generation co-owner of Meek’s Lumber & Hardware. That was due to a trust set up by her great-grandfather, who founded the business in 1919 and named all future generations of the family as co-owners upon birth.
By the time Carrie reached her 30s, Meek’s had 44 owners, ranging from age 2 to 78. Only five family members were active in the business, which was split into two divisions: the California-based Western Division run by Carrie’s father, Bill, and the Missouri-based Midwest Division run by her uncle, Terry.
Of Carrie’s generation, only two of her cousins were active operators. As Bill and Terry inched closer to retirement, members of the family started wondering about the future of Meek’s. To complicate matters, there was no buy-sell agreement to allow family members to exit, and Meek’s had only informal governance for distributions or capital investments.
Carrie, who worked in sales management, did not intend to join the company. When her dad lost his successor, she agreed to lead the Western Division as CEO until she found her replacement.
Bill and Carrie believed selling the company was the best way forward for shareholders. Terry and his sons were less certain, as they were successfully running the Midwest.