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Don't follow the path of Waystar Royco
This dovetails on a couple previous posts (one and two). Here, we provide more guidance for business owners to prepare for a smooth and successful transition into retirement.
Anyone who has watched HBO’s Succession has gotten a glimpse of how contentious business successions can be. Hopefully, you are not embroiled in a family drama where the patriarch and company CEO does not reveal his successor, while the children each vie for the spot using self-serving and antagonistic methods (to say it nicely). While this makes for great entertainment, it is a masterclass in how not to execute a succession plan.
As the below article indicates, there are several important aspects to keep in mind when planning to leave your business. First, understand all the potential deal structures, possible successors, and the pros and cons of each. Second, make sure your financial needs and goals are not being sacrificed along the way. Owning a business affords special circumstances when it comes to retirement savings. And third, start planning well in advance. Do not wait until you are ready to retire. Start the process several years beforehand.
As the Roy family has shown, the process can get messy and ugly. Make sure you have a well thought out succession plan to avoid all the drama.
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