DEAR ELIZABETH talks about improving the odds of a successful business transition

Guiding business founders and owners to their Next Adventure? has been my life's work because I know how business transitions affect families, companies, employees, vendors, customers, and ultimately, communities. I've helped hundreds of families and organizations transition while keeping their important relationships intact.

The struggle between “We’ve always done it this way” and “Let’s try something new” can be quite challenging, and successful business transitions are more about asking the right questions and listening than clinging to familiar answers.

Throughout this year, I'll be answering important questions from both owners and successors. You can send yours to [email protected].

? Question 1: Unspoken Expectations

Dear Elizabeth,

Yesterday, my company’s COO, the woman I hoped would one day be my successor, told me that one of our largest competitors has hired her as its CEO. She’s agreed to stay on for four weeks instead of two, but I need help with a game plan - now.

Stunned

Dear Elizabeth's Response:

Dear Stunned,

You didn’t say, but I’m guessing that you never told your COO that you wanted her to be your successor, much less asked if ownership is what she wanted. Am I right?

If that's the case, go ahead and ask! Invite her into a candid and deep conversation about her life and career goals. If she’s not interested in ownership, come up with a plan that entices her to stay long enough to help you hire someone who can be your successor.?

However, if ownership is her dream, dive into creating a succession plan that meets your objectives and hers. In the meantime, start to tackle the six succession planning questions every owner must answer. You can access them here. That way, no matter how this works out, you have a clearer vision of your business transition journey.

? Question 2: Clash of Siblings

Dear Elizabeth,

I’ve got three children and two of them (twins) are active in my business. I believe both would make great owners except for one thing: They become 8-year-olds again whenever there’s a decision to be made. The sibling rivalry escalates to a Game of Thrones level. I never imagined selling my company to a private equity group, but right now that feels like the best option. What should I do? Is it time for me to give up on my dream of a family legacy and put the company on the market?

Head of House Stark

Dear Elizabeth's Response:

Dear Stark,

Every business transition is unique yet every one affects important relationships.

In your case, your transition will affect your cherished children. They will be in your and each other’s lives forever, so I believe your first priority should be preserving these precious bonds.

Have you thought about what’s behind the rivalry? Are your children in their dream positions? Is running the company something they both really want? What could they be trying to prove when they fight over decision-making privileges?

Spend some time probing the source of their behavior as you think about your company, your future, and your children's future.

Keep in mind that a business transition–whether it involves a private equity group or your children–is only successful if it meets your goals and maintains your important relationships.

You can check out my website for more resources and information to assist you in your journey.

I'm writing today from sunny, beautiful, and warm Hollywood, Florida.

No matter where I travel for work or leisure this year, I’m excited to keep answering the questions that keep you up at night.

See you next month!

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