When people think of a succession plan they often think of wills and trusts.
Certainly these are part of any quality succession plan. However, beyond the wills
and trusts there are a great number of questions that must be answered and steps that
must be taken.
1. Have you communicated to employees and your banker whom you intend to be running the business
after your death or disability?
2. Have you established a training plan to help your successor be successful?
3. Will your banker allow your successor to run the business and not call the loans to be paid?
4. Have you had the company appraised within the last three years?
5. Do you have a buy-sell agreement with your kids?
6. Do your kids have a buy-sell agreement between themselves?
7. Are your buy-sell agreements funded?
8. Does your buy-sell agreement include a section for disability?
9. Have you established and communicated a "Family Value" for the business?
10. Have you picked and communicated your retirement date?
11. Have you created at least three sources of income for yourself after retirement?
12. Have you established an outside board of advisors to help guide the next generation?
If you answered any of these questions with a "no," you may want to take a second look at your succession plan.
Don't cut yourself short. It is important that beyond the wills and trusts you should be adding things such as a
"Catastrophic Action Plan." This can be a three-ring binder that your successors will use as a daily guide to help
them succeed during the first few months after the death or disability of the principal owner.
We also have developed an interactive computer program that will help you identify the areas where you may lack
sufficient planning for the transition of your business to the next generation. The complete succession plan is
important to you, your family, your customers, and PPG. Don't do your succession half way. Take this process seriously
and do it right. Everyone wins when you do.