Next Generation Transition
Many business owners dream about the day that their children will take control of the business. When the children have had the proper training and experience, seeing them take over and successfully run a business can be one of the most gratifying experiences for a business owner and parent.
At the same time, passing on a business to the next generation is one of the trickiest and most challenging forms of transition. Stakes are high: if a transition is not successful, the value of a business may be diminished or destroyed; the inevitable stresses of running a successful business, let alone a struggling one, also have the potential to strain family relationships.
Much will depend on whether the son or daughter has the character and skills necessary to run the business. Robbinex can help on both counts:
- With the help of an industrial psychologist, we administer a test known as the TAIS Test, which predicts with a high degree of accuracy if someone does not have the psychological profile suitable for running a business. As a business owner, would you not wish to spare all of the involved parties the heartache of an unsuccessful transition, with all the financial consequences?
- We can work with the business owner to design a training program and career path within the company that results in a gradual building and testing of the successor’s competencies, to further improve chances of success.
We typically assist with valuation and designing a transaction structure by which ownership is passed onto the next generation.