Do your consultants have succession plans?
Think about your key advisers. The institutional knowledge they have about your family’s succession planning journey is invaluable. What happens if they are suddenly out of the picture?
In rural communities, it can be a challenge to find continuity with professional advisory team members, says Dick Wittman, a family business consultant and Idaho farmer. This group of professionals could include an attorney, CPA, lender or family business adviser.
“Don’t wait until you experience a crisis with a key adviser to consider where you’d turn for help,” Wittman says. “Engage your advisers with candor about their succession plans.”
Remember, succession planning is not a do-it- yourself task. A professional and collaborative team of advisers can keep you on track.
“A full team of advisers working together will come up with a much better strategy than any one adviser alone could,” says Johnne Syverson, strategic adviser with Transition Point Business Advisors. “You’ll have peace of mind knowing you have made the right decisions.”
Current and Future Needs
If your operation includes multiple generations, Wittman says, consider what talent is necessary to serve the needs of your operation’s successors.
“Are the needs in your business changing as you diversify or become more complex? Your current advisers might have been a good fit for you, but maybe your successors need to explore alternatives they’re more comfortable with rather than you picking one for them,” he says.
If you need to find new or additional advisers, Wittman says to:
Ask your primary advisers for their recommendations.
Ask farming neighbors whom they use and what kind of experiences they’ve had.
Interview prospective professionals to inquire if they’re taking on new clients. Ask them about fee structure and how they would acquire the institutional knowledge necessary to effectively serve your needs.
A diverse group of experts will create a comprehensive plan tailored to your operation, Syverson says, so be deliberate in choosing the right advisers.
Evaluate Your Professional Advisory Team
Reflect on your current team of professional advisers, suggests Dick Wittman, a family business consultant. Ask these questions:
- How old is your primary provider?
- Is there someone with bench strength in the business who is knowledgeable about your farm?
- Does your primary provider involve backup team members when engaging with you?
- Do your advisers play well with other advisers serving your needs? Do they network with others?
- Is your adviser growing and developing skill sets to keep up with the complex issues you face?
Don’t delay in creating or updating your succession plan. Join Wittman and other leading experts at the Legacy Project Conference, Jan. 28 in Chicago. Register at TPSummit.com
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