"the process or a period of changing from one state or condition to another."
"plan and direct the route or course"
Navigating the transition between father and son can be a hairy process! But it doesn't have to be that way. One of our clients, Mark, is a testament to that.
Mark owned a large plumbing contractor business. His son, Julian, started working in the field as a support plumber in high school, and came back to the business after college. Ten years in, and Julian owned 40% of the company and was running it like a true owner. By that time he had worked in every area of the business - boots-on-the-ground plumbing, the accounting department, customer service etc. You name it, he had done it.
Twenty five years later and Mark is retired. Julian has 100% control of the company and the business has doubled in the last 5 years. At Mark's death, plans are in place for Julian to receive a stepped up basis on the rest of the stock, while the other children will be compensated with life insurance policies and real estate ownership.
That sort of planning doesn't happen by mistake. Mark was adamant that when Julian took over, he would be ready. So he developed a training program that allowed Mark to learn every part of the business and implemented an incentive plan along the way so he would learn how to think like an owner, instead of just an employee.
Navigating the transition process correctly starts early. Don't wait and wish you had done it when it's already too late.