
Proper management succession planning creates options. Even if ultimately the entrepreneur sells out, the presence of a good management team who are able to run the business without them will maximise the price. It also creates the option of a Management Buy Out.
This option is often too readily dismissed by owners on the basis that ‘they can’t afford it’. From experience, if there is a good team managing a growing business, raising the funding is not the key issue.
Family Ownership and management succession planning must be a carefully thought out process that should start long before retirement.