Succession planning is a critical endeavor for all family businesses. If not done properly, a leadership void and/or discord among family members can have a significant negative impact on company performance. Although it is a difficult subject, it is critical to adequately prepare for succession. Key considerations include:

• Planning early, possibly decades ahead of time
• Company values and principles that will guide decisions
• Commitment from the current leader on a fixed retirement date
• Evaluation of leadership talent and interest both within the family and externally
• Adequate time for the successor to prepare for leadership and establish credibility
• Accommodation for family members not selected for leadership roles
• Support of external advisors (CPAs, attorneys, etc.) in objectively assessing what is right for the business

​In the end, the goal is for multiple generations to talk openly, get everyone on the same page, keep the family together and continue a successful business. Contact H2R CPA at 412-391-2920 or team@h2rcpa.com to learn more about how we work with our clients on succession planning.