Rick Kozlowski

Rick Kozlowski



(802) 864-5756



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Continuity of Management

As mentioned in other areas of this website, one thing is for certain -- you will eventually transition your business.  How that transition will occur is within your control -- but only if you properly plan in advance.

A key aspect of any business transition is maintaining the continuity of management.  Your death or disability, as the owner and key manager, could cripple the business.  In the case of a sale, whether to a family member, third party or ESOP, continuity is important to the transferee to ensure that the operation and management of the business is maintained without interruption, and that its value is not eroded.

You should have two plans in place.  The first plan is the emergency plan -- what if you die or are disabled? Who will take over operations in your absence?  This plan should be in writing, and known (preferably discussed) with those people who will take over the management of the business.  If the person who has legal control of the business (whether as an heir or as a holder of a power of attorney) is not the same person who will be the manager, that person should be included in the discussion of the plan and should know the details of your intent.    

The second plan is longer-range.  If your plan is to sell the business, you should be grooming your employees to help in that transition and to provide a potential buyer with a strong management team.  If you plan is to transition the business to a family member, then the focus should be on their development and integration into the business.

Many business owners ignore this key aspect of their planning -- they are not going to die or become disabled, and they will eventually get around to discussing and planning for new management.  When the time comes for the transition to occur, whether suddenly or upon retirement, it is too late to ensure for the continuity of management.

If you have any questions regarding this planning point, please contact me by accessing the information at the left side of this page.

Types of


a Plan