Emergency Plans: Part of Succession Planning for Family Businesses

I recently reported on a New York Times article discussing succession planning for the family business. In response to this article, the Wealth Mediation Blog adds that succession planning begins with emergency planning and ends with a clear and comprehensive written understanding between the current business leader and the successor.

Business founders and leaders reluctant to discuss succession may nevertheless be willing to adopt emergency plans for situations such as disability, illness, or kidnapping. The business leader can plan ahead for these situations and leave instructions regarding who will do what during that time.  An emergency plan may be a good first step in planning for the business leader’s ultimate departure.

A clear and comprehensive written agreement between the current leader and the successor closes the process of succession planning. An authentic letter from father to son in a succession planning context is reprinted in on the Wealth Mediation Blog as an example of this type of agreement.

See Gerald Le Vann, Family Business Succession: The Beginning and the End, Wealth Mediation Blog, Mar. 25, 2010.