Why you need a Succession Plan?

CHRISTIAN BUXTON, Buxton Consulting Group.

Most people know of HBO’s widely successful TV series, Succession. It centres on the Roy family, owners of global media and entertainment conglomerate Waystar RoyCo, as they fight for company control while their patriarch deals with health concerns. It might be New York and fancy, but
the characters are dealing with matters close to home for many family-owned businesses. Knowing who will operate your company into the future is smart. Figuring it out should not bring enough drama for a mini-series.

Relationship dynamics can seriously complicate succession planning and management. I know. I went through it recently. My dad and I had spent two decades building and creating the Sunshine Groupe, an integrated waste management business involved with landfill and recycling of C&D, mixed waste and plasterboard. We had shared a loose vision of building the
business up for sale at some point. But that was it.

After 20 years I felt that our values were moving apart so I left to start my own waste management consulting business. Dad stayed on, working on his own and experiencing health problems along the way. In the year after I moved on, another business expressed interest in buying my father out. Ageing and not in the best health, he was seriously considering it. After some intense soul-searching, I agreed to work as a consultant and handle the sale for him.

The next 12 months were very difficult. I watched, at times painfully, as my dad went through many difficult emotions and stress while we worked our way through due diligence and the finer points of the deal. When you have sunk your blood, sweat and tears into something, it is very hard to let go. It can feel as raw as a failed marriage or a death in the family.

We were fortunate. We landed on a deal agreeable to both parties. But our success was not because we had a plan. It was the location of the business and the ‘timing’ of the market. Not every business is so lucky.

I learned the hard way that having no succession plan can put you on the road to unnecessary pain and distress. It takes courage to look ahead but if you don’t, it can create conflict and ultimately limit your future opportunities, whether it be a potential sale or preparing for the business’
next leadership group – family or outsiders. I strongly urge founders and their next generations to have conversations early on.

The Benefits:
• smooth resolution of family ownership and leadership issues
• integration and synchronisation of family and business
• effective protection and management of family wealth
• legacy creation for family and business.

If you are thinking about succession support for your family’s venture, please call me. I have been there. My business, Buxton Consulting, is uniquely well placed to help.

www.buxtonconsultinggroup.com.au

Buxton Consulting have recently joined the CMPA as an Associate member looking to continue to advocate for Construction and Demolition Recycling and support family owned quarries and materials recycling business to plan for change and transition.

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