Succession Planning

This is the story of a failed plan for the business owner to retire and exit the business.

Recently my business partner and I had an appointment with a gentleman in his mid seventies that had retired five years ago and turned the business over to his son. The family business was stared in the late 1920′s and manufactured speciality equipment used in the agricultural industry. Unfortunately, the father is now back running the business, trying to keep the business alive.

What was the problem? The son was not qualified to take over the company. He changed the primary product line to an unrelated catagory which had no customer base. He neglected the core business, didn’t pay attention to expenses, piled up unpaid bills, and even didn’t pay the State employment taxes. When the father returned, it cost him nearly six figures to clear up these delinquent accounts.

Things are slowly getting back on track, but with an owner that wants to retire. If you find yourself in a similar situation, give us a call. We’ll be glad to advise you and if you want, we’ll seek to find a qualified buyer so you can exit confortably.