HOW TO PLAN FOR SUCCESSION
The following is an exerpt from How to Plan for Succession, a manual produced by Commercial Carrier University and sponsored by Castrol. CCU is an educational program produced by Commercial Carrier Journal that includes business management manuals, seminars aimed at improving management skills and a Website. For more information, visit www.commercialcarrieruniversity.com.
Succession at a family-owned business usually means transferring ownership and management to a family member. Transition to a family member raises unique management, legal and financing issues. This chapter focuses on the management issues.
Will it work?
The worst thing you should do is assume that your child or other family member will take over just because he is a family member. Answer these questions honestly:
Does the family member have the passion for the business? If a son or daughter has never expressed an interest in the business before you raised the issue, it’s difficult to imagine him or her as an acceptable successor.
