Business Succession Attorney in Boston, Massachusetts
When should business owners create a succession plan?
When should business owners create a succession plan?
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[Music]
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we are oftentimes confronted with the
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question by business owners of when
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should they begin to create a succession
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plan and the answer is sooner than later
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certainly where we have seen situations
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breakdown is when business owners
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oftentimes patriarchs or matriarchs of a
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family have children working in the
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family and they find it very difficult
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to make hard decisions as to who that
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you know should come up and continue the
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business into the next generation so
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certainly I think a business owner has
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to identify who are the people that have
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the skills the interest level but
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certainly the skills to carry to the
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next generation and unfortunately that
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doesn’t necessarily mean that birth
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order makes any particular child more or
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less qualified to be the person to carry
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on the business into the you know into
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the next generation
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but once they identify who it is they
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can make sure that person gets the
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education the training and the
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experience to be able to carry it on but
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then it’s making the hard decision to
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communicate that not only to the sibling
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who they believe is the appropriate
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person to be to head up that effort but
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also to the others because often times
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you know children will not have that
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same understanding and they think there
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can be ramifications and that can also
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happen in in non family situations I
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think it’s important that business
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owners try to consider at least five
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years if possible before they’re going
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to retire and begin to put the next
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hierarchy of executives or decision
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makers or management team in place so
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that they have the experience while the
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senior level people are still there can
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ask questions perhaps make some mistakes
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and overcome them but so that they’ll be
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fully battle-tested
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when the time comes for them to take the
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reins
Boston, MA commercial litigation attorney Robert R. Berluti explains why it’s so important to create a businesses succession plan and when they should do it.
