Succession Planning May Ease Post-Sale Struggles for Departing Business Owners
When George Lucas sold his film production company, Lucasfilm, to the Walt Disney Company in 2012, Lucas also provided his story treatments for the next trilogy of Star Wars films to Disney. Rather than following Lucas’ plan, Disney decided to go in a different direction with the films. Thus, reports that Lucas did not like Star Wars: The Force Awakens may not be a surprise.
Often, business owners, who have spent years building their business, struggle to release control of the business after a sale. Yet, there are practical steps that can be taken to ease the transition for both the former and new owners of a business. Succession planning, if started early, may allow the transitioning owner to select and develop a successor. By working with the departing owner, the successor is able to understand the breadth and depth of the business. With time, the departing owner should feel confident in his/her successor and better able to relinquish control.
DISCLAIMER: The information provided is for general informational purposes only. This post is not updated to account for changes in the law and should not be considered tax or legal advice. This article is not intended to create an attorney-client relationship. You should consult with legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.