Fall 2014 issue of Horizons

As many organizations begin the process to establish their visions and strategies for 2020 and beyond, a major revelation in the transition of leadership is becoming increasingly apparent. It’s believed that by 2020, a significant number of the baby boomer generation who owned businesses will have or be in the process of transitioning ownership and leadership of their respective businesses. For those companies that have an already established succession plan, this change will serve as an opportunity. For those that don’t, they could experience significant risk. Succession is a journey that preferably commences the day you start your business, but often only begins when a business owner decides it is time to sell or transfer control of the business. As many owners are contemplating the next phase of their involvement with their respective companies, it is important to understand that succession does not equal retirement, but instead it equals business evolution. Many owners have trodden the path of business succession and discovered the hard way that improper planning can foul the journey, and in some instances, even inflict significant costs, both financial and personal. Through our membership in Baker Tilly International, RubinBrown LLP has participated in a global research study that has taken a closer look as both the sociological and economic implications of the family business succession process. The results from 1,650 business owners across 55 countries provide businesses with a common sense, practical guide on how you should view and conduct your succession process. To address the structures of family businesses, the findings of the research have been condensed into eight principles of succession which are intended to be a practical guide to how family businesses should view and conduct their succession process. Key findings from the research include: Principle 1: Succession Is Not Retirement If you believe succession is about retirement, growing old or stepping down, then you have lost the process before you have commenced. Succession is truly about growth, opportunity and building the future while you are there today. It is about future proofing the capital value of your business by ensuring its continuity and evolution.

Baker Tilly International Global Succession Research Study The survey focused solely on the issue of succession and is not part of a general family business survey. It is structured to focus on the dynamics, barriers and success strategies experienced in a succession process. The findings in the November 2013 survey are interim results and will continue to be refined and explored as this survey continues. To access the interim findings, as well as find other succession planning resources, please visit RubinBrown.com/BTI-Survey

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