- Failing to plan is a prelude to chaos. Every business, whether a small family enterprise or Fortune 500, needs a solid succession plan. Absent clear guidance and structured transition for both ownership and operational control, costly disputes and dysfunction are inevitable.
- Effective corporate governance is essential to preserving and protecting a company’s value and mission. It provides for accountability, transparency, risk management and sustainability.
- The successor must be positioned for success. Choosing the right successor — one with the aptitude and appetite to pursue the business mission — is critical for the long-term success of the company.
- The family dynamics of a business owner will eventually impact ownership and operations of the enterprise. Nothing highlights this more than the 3 Ds: Divorce, Dementia and Death. Buy-sell agreements, key man insurance, by-laws or operating agreements are important baseline succession documents.
Monique D. Hayes is a partner at DGIM Law. She centers her practice on wealth preservation and protection, including business succession planning. She is also the founder of Estates Made Easy, an AI-driven digital platform for estate planning; EstatesMadeEasy.com; DGIMLaw.com.
