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 but lacking 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 as well as their strengths & weaknesses and team dynamics
- Studied the customer, industry, and relationship base to form an opinion on business continuity risk
- Developed a succession plan with phase one being a management transition with the current owners stepping-out of management and the empowering the younger generation. Taught the younger managers about setting and achieving 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.