Succession Planning

Succession Planning

This is our core business and Proagtive work closely with family businesses nationwide, taking them through a process of succession planning. This process involves a series of steps including questionnaires, financial analysis, phone meetings, face to face family meetings, action plans and an implementation process.

How Proagtive defines succession…

Succession is often viewed as ‘who gets what when’. This is but one small part of the succession process. What underpins a successful succession plan is business viability, therefore another important aspect of succession planning is transition of management. This is, ‘who does what when.’ The next critical element is leadership transition. If this is unaddressed it can seriously undermine any good succession plan. It is about the phenomenon of letting go and the evolution of roles within a business over time.

The complexities of succession planning…

Leadership – Who leads

Management – Who does what when

Ownership - ‘Who gets what when’

Succession planning is not an event, it is an ongoing process.

The process involves the transfer of managerial control, assets, ownership and an occupation. Successors must be selected and groomed. The timing of the transition and managing the entry and exit of family members is one part of the process. Estate planning and the preservation of the family wealth and business continuity is the second vital part of the succession process.

Therefore we can understand that the process goes beyond drafting wills, buy sell agreements, commissioning valuations and purchasing insurance.

When most professionals approach the issue of succession planning, it is our experience that they spend most time and effort on ownership issues. Since these issues usually present qualitative questions which are measurable and objective, they like to address those first because they are easiest. We start at the beginning, not just the easy fix areas, our process allows us to work our way through all aspects with families.

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