CFO’s have a vested interest in succession and the continuity of business success – after all, it impacts their own success. They understand the future goals and vision of the current owners and understand that others in the multi-unit franchisee organization also have a vested interest in the continued success of the business through the next generation of leadership. Influential CFOs are the business conduit between short-term financial goals and long-term vision and business strategy.
The CFO functions in a multitude of areas critical to succession and by leveraging your CFO they can facilitate positive outcomes to potential succession challenges such as:
- Profitability: Understands critical drivers.
- Working Capital: Knows how a circumstantial change in profitability can impact working capital and if the business has enough to survive the unexpected (need I mention Covid?).
- Credit Continuity and Worthiness
- Estate Tax Vulnerability.
- Strategic Vendors and Customers: Aware of blindsides, especially related to vendors’ contractual obligations or loyalty issues.
- Key Manager and Family Member Successor Vulnerabilities: Exposure to operations provides insight into how dependent the business is on the pretenders and how to develop the contenders.
Business owners who work on trusting their CFO can partner with them to ultimately help achieve the desired goals for the business now and in the future.
Click the following link to read the complete article on Franchising.com: CFO’s Are Critical to Succession Planning
Read the article and then reach out to us to get some insights into your own situation. A few moments with us will provide you insight and clarity for your next steps forward. Contact Us
The Succession Planning Matrix
The Succession Planning Matrix
Many people put off succession planning because they think it means retirement, exit, and the end. However; succession planning is just the beginning. It gives the owner options in terms of what “their next” looks like, whether that be growth, philanthropy, or a new business venture. Our process focuses are addressing 10 key areas of what we call the Succession Matrix.
Click the following link for more drill-down resources on The Succession Matrix, or check out our Facebook post.
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We can help you with insights, other resources, and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business right away.
