Transition Ready
In the early days of my billing business, a prospective customer asked me: “what if I was hit by a bus?” This highlighted to me the dependence of the business on me, and I set about making the business “sale-ready”. That didn’t mean that I planned to sell it, rather that if I ever wanted to, I could, because the business would be worth as much without me as with me. That is my definition of a true asset.
People have been talking about “the great wealth transition” for a long time, and for various reasons, these transitions are taking longer than expected. But not matter when the transition will actually happen, it is in the interests of a family to become “transition ready”. That means (a) the incumbent generation have clarity about what life looks like for them if and when they choose to retire, (b) the rising generation are ready, willing and able to step into positions of control within the family enterprise, and (c) the operating and non-operating assets of the family are well-governed and managed, and therefore the family has optionality regarding their future disposition.
Being “transition ready” is a lot more than having a will and an estate plan with a lawyer. It needs communication across the family, and shared vision for the future. Thinking and talking about our mortality and plans for the future can be very confronting. Not talking about it leads to fragile family systems that can easily fall into conflict.
The original article was published in Wealth Transition: How Transition Ready Is Your Family - David Werdiger
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A successful family advisor, business strategist, entrepreneur, and thought leader with a proven track record of achievement in driving innovation and growth for entrepreneurial endeavours and not-for-profit organisations.
David's experience includes founding and building multiple businesses from the ground up, and expanding and leading operations into new markets. He is recognised by colleagues as a creative problem-solver and strategist with expertise in coming up with ideas and creating new ways of improving business, strategy, operations, and results.
As a business and family advisor, he provides clients with expert business advice on intergenerational business and wealth transition, advancing entrepreneurial efforts, setting up good governance, improving financial and operational results, and strategic direction. He is also a seasoned program leader with an aptitude for providing governance in corporate and philanthropic pursuits with a strong focus on culturally focused non-profits.