Succession Plan for a 40-Year-Old Manufacturing Business
- Family-owned first-generation business owned by founder / shareholders now in their 70s.
- Loyal and talented young management team with interest in ownership lack business and financial expertise or the funds to buy out shareholders
- Shareholders would (ideally) like ownership to transfer to an employee stock ownership company (ESOP)
- An actionable ownership & management succession plan
- Temporary leadership to implement the succession plan
- Periodic financial & business oversight
- Met with managers to learn their interests, strengths & weaknesses, and team dynamics
- Studied the customer, industry, and relationship base to form an opinion on business continuity risk
- Developed a succession plan. In phase one, the management and current owners would step down to empower the younger generation. Next, the younger managers learned to set and achieve goals through weekly accountability meetings
- After an 18 month successful management transition, recommended and received approval on an ownership transition plan involving management purchasing shares from the current owners on an owner financed basis
- Currently serve in a board of director role (along with former owners) to provide leadership and provide financial oversight including being guided by budgets.