...

The Blueprint for Business Succession

The Vision for Business Succession: A Multidimensional Approach

As a swift river runs its course, it embodies several twists and turns. Similarly, the journey of a business encompasses numerous phases each requiring its distinct game plan. One unavoidable stage that every business, big or small, confronts, is succession. At DeFreitas & Minsky LLP, we view succession not just as a juncture, but as a continuous process that shapes the future of your enterprise. Our business succession blueprint is designed to address the complexities of the transition while aiming to drive sustainability for your organization.

Navigating the Succession Landscape: A Statistical Perspective

According to a recent Family Business Institute report, only 30% of family businesses survive into the second generation, and a mere 12% make it to the third.3 The report lays bare the fact that a majority of businesses fail to implement a successful succession process. However, with a comprehensive plan in place, businesses can defy these stark statistics.

Assembling the Blueprint: Core Components of Effective Succession

At DeFreitas & Minsky LLP, we believe that the generation of an effective business succession plan is built on following core components that ensure a smooth transition:

Early Planning: Our firm champions the essence of early planning in order to forecast and mitigate potential roadblocks in the process of succession. As per a 2016 report by Small Business Trends, 58% of small business owners have no succession plan4.

Identifying Successors: We aid in identifying competent successors who have the potential to drive future success for your business.

Frameworks for Talent Development: We advocate for the creation of productive development programs for your identified successors, ensuring they live up to their potential.

Legal and Financial Considerations: DeFreitas & Minsky LLP helps you navigate the entwined maze of legalities and financial considerations that come along with business succession.

Early Planning: The Foundation of Successful Succession

Early planning is the crux of a business succession blueprint. Through our extensive experience, we’ve found that businesses who begin their succession planning 5-10 years prior to expected transitions often fare better. An early start allows businesses to not just anticipate, but effectively manage both foreseen and unforeseen changes.

Identifying Successors: The Pillars of Future Success

Successful succession begins with identifying the right successors. At DeFreitas & Minsky LLP, we assist clients in recognizing prospective leaders who have not only the capability but also the commitment towards the organization. Our holistic consideration evaluates individuals across multiple dimensions – operational expertise, managerial skills, strategic thinking, and cultural fit.

Framework of Talent Development: Nurturing Leadership

Equipping the potential successors with necessary skills, knowledge, and attitudes necessary for leadership roles is essential. We help lay down a framework for their development, which includes on-the-job learning, mentoring, formal training, and critical feedback.

Legal and Financial Considerations: A Stitch in Time Saves Nine

Avoiding legal loopholes and financial pitfalls is crucial for successful business succession. We guide you through agreements concerning ownership transition, tax implications, and financial readiness of the successors. This ensures you’re safely insulated against both present and future legal-financial nuisances.

Business Succession Blueprint: A Pledge for Tomorrow

At DeFreitas & Minsky LLP, we understand that your business isn’t just an entity, it’s a legacy carried forward. Our commitment, through the business succession blueprint, is to ensure that your business withstands the test of time and change. With the right combination of foresight, planning, and dedication, our blueprint can aid businesses in boosting their chances of successful succession. Navigating succession can indeed become a less daunting task, given that one is armed with a plan that promises not just survival but growth for generations. As Benjamin Franklin once quoted, “If you fail to plan, you are planning to fail.” Our business succession blueprint is that plan which ensures your business never has to face failure.

Table of Contents

The Blueprint for Business Succession

Speak to

One of our certified public Accountants