The Music Has Stopped

The Twelve Dangers In Family Business Succession - 2. Darkness – Is A Path To Nowhere

The traveller has failed to act quickly enough and has been left behind while everyone else has begun their journey to the summit.

There is a real danger in simply being left behind as your peers move forward with their succession plans and you simply do not act. Succession is not optional; at some point of time, you will need to release your management and ownership of your business. As in all things, it is better that you actively plan for and manage the timing to maximise your return no matter what succession option you may select.

Inaction may arise simply through a sense of invincibility or an inertia as you do not know where or how to start. The most prevalent trigger in succession is an advisor promoting action; if you are uncertain where or why to start, engage an advisor earlier rather than later.

Even in succession there exists a competitive playing field for resources, for example:

• The new CEO you wanted to step into your business has taken another offer.
• The children who really were interested in following in your footsteps never did as you did not engage then with the opportunity.
• Your best option for a sale has expired as they just purchased another business.
• The market has moved against you and profits are not what they used to be.

For those of the Baby Boomers generation (born between 1946 and 1964) the years 2025–2026 is a critical period. The bulk of the generation will reach their 70s and will likely be seeking to transition their businesses. Resources will be limited and those who are slow off the mark may find themselves with literally a path to nowhere.

Succession is an area where first mover advantage is real and possibly permanent.

Here is a brief video clip that speaks into this theme with links to the full video and resources: