Succession Planning Step-by-Step: Part 1

By Rex A. Collins Ensure the future of your dealership with this sound process for choosing new leaders, funding the transition and ensuring a rewarding retirement for yourself. A sound dealership succession plan addresses a long list of issues, including retirement income, transferring wealth to the dealer’s heirs, transferring ownership, dealing with the income and estate tax consequences associated with an ownership transfer, and addressing other issues key to the ongoing success of the business; not the least of which (and often forgotten) is transitioning management. Here is the first in a two-part series to lead you step-by-step through a successful transition. Step 1: Identify & Prioritize Goals You cannot address all business succession issues at once; what happens with one will affect how you handle another. Ideally, a dealer begins planning with a third party professional, one who has industry as well as succession planning expertise. This planning should begin at least 10 years prior to an expected retirement date and should include a contingency plan if death, illness, a family situation or a change of heart require an earlier-than-expected transition date. READ FULL ARTICLE>>