All business owners eventually retire. Statistics indicate that only one in three family businesses survive to the next generation. At Scott Wolfe, we work with clients to change this statistic and help set up next-generation businesses for success.
One example is of a client who approached us with the challenge of passing the farm on to two farming children. The only payment the client wanted from the farm was adequate retirement funding. On the surface, because the numbers worked, the succession process seemed straightforward. However, in many of these cases, passing control of an operation doesn't just instantly happen.
The client was concerned that the siblings would be unable to work together in the long-term, and therefore had difficulty passing enough control to the children to allow them to effectively gain management and decision-making skills. We worked with the client and the children to create a management model for the farm and develop formalized roles and responsibilities. Every member of the operation was now accountable for his/her actions and decisions.
The retiring operator has now been able to relinquish control and the children have continued to run a successful operation.