It is every parent’s dream to pass on their business legacy to their children. More often than not, transferring the business from the parent, with all their years of experience in running the business, to their child, who has not yet lived through the challenges of being a business owner, is a disaster. Not only for the business and its employees, but also for the parent’s retirement dreams. These were the fears of a client who was looking to pass his business to his son. Both had been working together to shape the business for a while, but it had always been the client’s responsibility to envision the culture and make sure the checks cleared the bank. When it was time to transition, they both turned to GARRITANO for support.
The GARRITANO Approach:
GARRITANO’s team met with both father and son, together and separately, to get a full understanding of the goals and expectations of each. Succession planning is a combination of science and art. There are several structures to be considered, calculations to understand and a lot of assumptions that must be agreed upon before work can start. GARRITANO worked closely with the clients and attorneys to ensure that the father had his dream retirement plan and the son could continue to grow the business. As part of this planning, the son worked with GARRITANO to customize his own DIAMOND CFOTM service that would assist in a seamless transition. GARRITANO provided cash flow management, payroll, accounts payable and accounts receivable services that helped give both the father and the son comfort in knowing that they could do what they’ve set out to do. A major benefit to the son was the education and data analytics provided by GARRITANO which helped him understand his business, recognize anomalies and propel the businesses growth.