Change can be a difficult thing for any company to withstand, but with the proper preparation, the long-term viability of the company can be sustained. GPS uses a formal project management approach to help you coordinate all of the important factors in your succession plan. Whether it is engaging a new partner, merging with a new entity, or an orderly dissolution of the company, having proactively prepared a succession plan will ensure that all issues are dealt with objectively and efficiently.
You own a successful business, but you do have questions. GPS, in partnership with the necessary experts, can answer all of these questions for you and help you plan for the future.
Creating a proper succession plan takes time. With the proper analysis and preparation, GPS will create a plan that addresses the unique nuances of your company’s partners, employees, and processes, and will integrate seamlessly into your operations when the need arises.
Case Study:
The Situation
This client asked GPS to create a succession plan for the business because the current arrangement was out of date and ineffectively structured. The family-run company was lead by two brothers, both approaching 50 years old, who wanted to ensure that processes were fully documented in order to protect them and their families in the future.
The Solution
GPS reviewed the status of the company and discovered surprising results for the brothers – the corporate structure had not been updated since they had taken over ownership from their father years before, the company did not have sufficient funding mechanisms to cover off the company’s liabilities, the funding agreement was out of date, the shareholder agreement was out of date, and the coverage/funding of contingency situations (death, disability, retirement) were not fully covered.
The Results
After a review and presentation of the findings, GPS oversaw the creation of an updated agreement. This included having the appropriate funding in place for all contingencies. The brothers have committed to revisiting this plan annually with GPS to ensure the relevancy of the agreement going forward.
