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Honored Advisor

Succession planning.

I wrote on this subject several years ago...... a foolish endeavor but I was young in the old guy category at the time. In an entity I advise, the heirs were in good careers outside of farming and we chose to try to attract youthful management to the entity with a share of production ownership. A concept I had failed with at least twice before.
I want to blame myself for poor character assesments and settling when the chosen didn’t materialize. But the lineup of potentials choices was “the usual suspects” and contrary to my expectations, people don’t always rise to Be “equal to the opportunity.

This week, in another enterprise, the heirs are involved in day to day management and the subject of succession planning is scheduled for a new meeting.
One aspect that works this time over that time is stress motivation.
IMO, this subject is best approached in low profit stress times. When assets are not overvalued and not much cash is on the table, expectations and goals become realistic and results have a better chance of success. We need to work on the future most when it looks like there might not be one.
There are some accounting reasons that support this theory. It is much easier to pass potential and future success than yesterday’s success.
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Veteran Advisor

Re: Succession planning.

SW    -  Interesting  read  on  a  most  complicated  subject - - -

 

Direction  towards  uncomplicated,  being  a  complex  route  to  navigate   -  -  -

 

Read  a  piece  about  the  '' Dorrance  '''  family  heritage  and  the  intricacies  of  soup  - - -

 

History,  a  few  generations  forward  will  interesting  to  a  number  unknown  - - -     

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Honored Advisor

Re: Succession planning.

Lending complication to the subject (comparing the two cases) is starting early (well before a retirement point) allows for greater effectiveness and training.
Yet contrary is the instability of life these days.
Careers, relationships, health, maturity, personal commitments..... all change so much in short times.

The greatest example would be in marriage relationships. How difficult to plan stability. Livestock on some farms are more stable than the human relationships.
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Veteran Advisor

Re: Succession planning.

Stability   -  a    extremely    scarce   commodity,   from  rural  routes       to      1600 Pennsylvania   Ave.   Zip Code   20500    - - - 

 

Seems   the   impressions  of  a  4000 sq. ft.  house  are   the   ''''  new   barometer ''''   of   first  notice , then   vehicles,  equipment,   and  various  vacation  destinations  for  conversation  sake  (  Jone -seseses  KEEP   up   WiTH )   -  maybe  ?   ? 

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Honored Advisor

Re: Succession planning.

But now we expect to walk away from that house every 4 years when our mood changes. Or the rug gets pulled away. Or we get tired or discouraged. Not a luxury farming can afford.
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Honored Advisor

Re: Succession planning.

The real issue I found on the example years back was work ethic and business management.
As small business recedes business classes are not high school any more. College geared to corporate employment but basic small business ownership is not expected.
And the midwestern farm work ethic is not found in many places in this world. As my dad would say “few understand or practice it”.
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