KANSAS CITY, MO — Determining a leadership exit plan for an organization, whether it’s through retirement, sale, merger or acquisition, can be one of the most difficult decisions a company will make. There are many aspects to consider, including business continuity; transition plans; the wellbeing of the employees, customers and vendors; and the overall financial impact.
The departure of a top executive will have a significant impact on the enterprise, and the exit strategy is an important process. It requires patience because it can eat away at time, finances and, to an extent, sanity.
The first step is familiarizing the leadership team with how the process will look.
Whether planning for a sale or retirement, the next business or individual doesn’t necessarily need to be identified immediately, but the leadership team should think about what traits the successor or next owner should have and weigh them against the goals and aspirations of the organization.
Similar to selling a home, the buyer or successor should be able to see themselves leading the company or visualize the company as part of a larger organization. Updating processes and writing down specific business protocols will help the successor easily pick up where the predecessor left off. In the case of an acquisition, it will help the buyer more easily fold the business and operations into its own.