Long before you’re ready to retire … Take time to build a solid succession plan
Abstract: The earlier succession planning begins, the better. Developing and grooming a successor will take time, as will preparing employees and managers to adjust to a new ownership structure. It’s also necessary to bring together a team of experts to help create a workable succession plan that provides for a sound management structure and includes a buy-sell agreement. Or it may be better to sell the company to an outside party, or to employees through an employee stock ownership plan (ESOP). All options require planning well in advance of an owner’s retirement.