The Elephant In The Living Room

For many insurance producers, succession planning is an example of an avoidance phenomenon, just as estate or financial planning can be for the average individual. All family- and non-family-owned businesses face a common challenge: people issues. But because people dynamics are often difficult to grasp and manage, principals tend to focus on the five logical and tangible steps of the process. These are: 1. defining and organizing the business for sale and/or succession, 2. setting financial objectives, 3. finding potential buyers and/or successors, 4. valuing the business, and 5. planning for the transition. The thin red line that runs through all of the steps is the interpersonal dynamic that is destined to dominate the process if it is not addressed early, often and throughout.