Don't follow the path of Waystar Royco
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.
This content was created by a third party. All opinions, comments, conclusions are of the author and not Jackson Creek Investment Advisors LLC. The information published herein is provided for informational purposes only and does not constitute an offer of investment advisory services. All information is subject to change without notice. Nothing contained herein constitutes financial, legal, tax, or other advice. These opinions may not fit to your risk and return preferences. Investment recommendations may change, and readers are urged to check with their investment advisors before making any investment decisions. Information provided is obtained from sources believed to be reliable, but we cannot attest to its accuracy. Past performance is not necessarily indicative of future returns. Investment advisory services are offered through Jackson Creek Investment Advisors LLC, a Registered Investment Adviser.