Data Checklist
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Business succession planning can be a challenging task, but it is important to plan for your business’ future sooner rather than later. Here are some questions to think about when getting ready to create your succession plan:
Family Information
- Who are the family members currently involved in operating the business?
- What are their job descriptions?
- How are they compensated?
- Which family members are not involved in operating the business? What businesses are they in?
- What business and educational experiences do they have?
- Do any family members not involved in operating the business have an ownership interest in the business?
- What are the relationships of the people staying in the business?
- Are any family members in the business qualified to be president or managers? What is the basis for the determination?
- Can the family member who is selling the business retire when and in the manner desired if family succession is chosen rather than outside sale?
- What current or potential conflicts exist between family members?
- Is the family willing to discuss the available options openly?
- What are the withdrawing members’ plans for involvement after the transfer of ownership?
- Have any promises to or agreements with family members and key employees been made?
- Will key employees stay if the business passes to a family member?
Key Employee Information
- Who are the key employees within the organization?
- Which key employees will stay if the business is sold to outsiders?
- In the owner’s opinion, which key employees have the expertise to run the business?
- Are any key employees interested in owning the business?
- What are the advantages of selling to key employees over selling to or merging with an outside party?
- What are the disadvantages of selling to a specific employee or group of employees? (Consider each employee or group separately.)
- Do the employees have the resources to buy the business or arrange a deal to buy? (Consider each employee or group separately)
- What current or potential conflicts exist between key employees?
- What incentive programs are in place to retain and reward loyal employees?
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