August 22 - 25, 2018

Georgia World Congress Center | Atlanta, GA| USA

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Business Succession Planning Insights: Tales from the Trenches - (Part 1 of 6)

by Editor 4. April 2018 12:17

By:  Terrance K. Resnick and Leon B. Resnick

Business Succession Planning - although the topic on the surface may appear to be rather mundane, improper succession planning can literally cause the loss of a company and place family members in situations where they never speak to one another again. It’s that serious.

Statistically, only 1/3 of all family businesses will survive from the first to second generation and less than 15% will survive from the second to third generation. I’m not referring only to companies that are struggling to stay afloat, this sobering statistic includes many, many, businesses that at one time were hugely successful. Think it can’t happen to you? None of the individuals involved with those businesses expected it to happen to them either. Ask any family members of those business owners if it could happen. Improper business succession planning is the leading cause of ultimate business failure.

My client base of proven business owners and entrepreneurs stretches across the United States and although they are involved in different industries, they share many similar attributes including understanding the importance of business succession planning.  More critical than understanding the importance is that they actually took action and implemented a business succession plan that protects the company owners, their families, the employees and business.

Clearly if a business owner has not established a succession plan and the company ends up not surviving it’s no big surprise. What’s actually worse is businesses that ultimately fail even though a succession plan was in place. Why would a business ultimately fail if there was a succession plan in place? There are many reasons. In fact, many very successful business owners and their businesses are unknowingly sitting on ticking time bombs.

Come learn more about this topic at the "Survive and Thrive - Assuring the Long-Term Success of your Company" session at the IWF Education Conference.

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