Succession planning for businesses should ideally be an organized and systematic endeavor oriented toward turning over managerial responsibilities and ownership to a known successor. Though this is an unavoidable and crucial process, many closely held companies are completely unprepared for this event. Despite this, there are a number of potential short-term solutions for business owners who have not adequately prepared for their retirement, death, or incapacity. One possibility is interim management. This may consist of bringing in a retired executive or an executive waiting out a non-compete clause. Bringing in a professional to oversee operations may help prevent the forced sale of a business for less than its actual worth.
See Andrew Lohn, What to Do When There’s No Clear Successor, Wealth Management.com, September 12, 2017.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
