Keys to Spousal Business Succession

Selection of the appropriate choice depends on many factors. Chief among the considerations is the length of time anticipated for the successor spouse's involvement. Will the spouse's participation be short-term until the affected owner recovers from the triggering event? If so, how long should the company be operated with temporary leadership before a decision is made to implement a permanent succession plan? And, will a permanent succession plan mean different ownership and/or management?

In some cases the successor spouse may qualify to represent the owner interest but not have the necessary license and education to operate the company. If necessary, a qualified manager having the necessary qualifications can be hired.

The potential successor needs to develop their action plan based on their:

            Management ability

            Availability

            Motivation

            Operating knowledge of the company

They also need to consider the company's:

            Type of legal entity

            Size

            Number of employees (their knowledge and experience)

            Diversification of management

            Diversification of product or services

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