061 - Inside vs Outside Successor

Today I am answering Mark’s question from Henrico, VA. Business owners often grapple with the dilemma whether to promote an existing employee or business partner or bring someone from outside to succeed them.

Surprise, surprise… it depends.

Some of the variables are the type of culture the business have, the sensitivity of staff members to a transition, the time needed to groom a successor, any skill gaps the company have and the potential for an outside successor to bring a book or business or open a new market and the plans of the owner to cash out of the company at the time of the succession transition or shortly thereafter.

One thing is certain. A successor is necessary in most cases for a reasonable chance of doing a liquidity transaction with a third party.

Tune into the show for the details. Thanks for listening to the show!

Your succession is success!