In this solo episode of The Disruptive Successor Show, Jonathan shares how succession planning is an ongoing process that requires a roadmap that ensures the long-term sustainability of your family business. He advises family businesses on how to separate the all-too-familiar intermingling of family and business issues, as well as the dos and don'ts of succession. He talks about the top 7 most common exit needs: limit ownership to a defined group, create financial independence for the generation closest to exit, transfer ownership down to the next generation with minimum taxes, prepare the next generation to effectively run the company, maintain the current generation's control of the company until the next generation is ready, avoid being unfair to any family heirs, and promote family alignment and minimize discord. HIGHLIGHT QUOTES JONATHAN: Your succession roadmap starts with defining family "Do discuss and establish a definition of family. What does family mean in your business? Does it mean spouses? How far does it extend? “Do” create a legal agreement signed by all current and future owners preventing any sale or transfer of ownership to others without family approval commonly called a shareholder agreement or a buy-sell agreement." JONATHAN: Be equitable, not equal, with heirs "Don't split up the company equally among heirs who are not equally engaged. It rarely works in the long run. “Do” define the value of sweat equity. How much of the company does an heir earn by working at the company for the long term? “Do” balance inheritance for heirs who are not actively involved in the company by providing them with income or assets, possibly from the company or other forms of wealth that is not tied to the ownership of the business." If you enjoyed today’s episode, please subscribe, review, and share with a friend who would benefit from the message. If you’re interested in picking up a copy of Jonathan Goldhill’s book, Disruptive Successor, go to the website at www.DisruptiveSuccessor.com You can reach Jonathan by emailing him at john@thegoldhillgroup.com.
In this solo episode of The Disruptive Successor Show, Jonathan shares how succession planning is an ongoing process that requires a roadmap that ensures the long-term sustainability of your family business. He advises family businesses on how to separate the all-too-familiar intermingling of family and business issues, as well as the dos and don'ts of succession.
He talks about the top 7 most common exit needs: limit ownership to a defined group, create financial independence for the generation closest to exit, transfer ownership down to the next generation with minimum taxes, prepare the next generation to effectively run the company, maintain the current generation's control of the company until the next generation is ready, avoid being unfair to any family heirs, and promote family alignment and minimize discord.
HIGHLIGHT QUOTES
JONATHAN: Your succession roadmap starts with defining family
"Do discuss and establish a definition of family. What does family mean in your business? Does it mean spouses? How far does it extend? “Do” create a legal agreement signed by all current and future owners preventing any sale or transfer of ownership to others without family approval commonly called a shareholder agreement or a buy-sell agreement."
JONATHAN: Be equitable, not equal, with heirs
"Don't split up the company equally among heirs who are not equally engaged. It rarely works in the long run. “Do” define the value of sweat equity. How much of the company does an heir earn by working at the company for the long term? “Do” balance inheritance for heirs who are not actively involved in the company by providing them with income or assets, possibly from the company or other forms of wealth that is not tied to the ownership of the business."
If you enjoyed today’s episode, please subscribe, review, and share with a friend who would benefit from the message. If you’re interested in picking up a copy of Jonathan Goldhill’s book, Disruptive Successor, go to the website at www.DisruptiveSuccessor.com
You can reach Jonathan by emailing him at john@thegoldhillgroup.com.