According to the Appraisal Institute, the average age of U.S. appraisers is 53, yet some of those who operate family businesses haven’t made succession planning a priority.
Steve Bergsman, a freelance writer and author of several books, takes a close look at this issue for the current edition of the Appraisal Institute’s Valuation magazine.
The article addresses both the hard (business) side and soft (family) side of the succession process. It also covers the three overarching rules for keeping the peace, whether to transfer ownership to a child lacking the necessary skill set, giving up control of the company without a solid plan in place, and whether to implement succession all at once or in small chunks. The average age of entrepreneurs who seek succession planning is 57, and they look to work an additional eight to 10 years. [Read more…]