PART 4 – Tuesday, October 23rd, Dave Franzetta, co-author of Changing Places, talked with radio host, Stu Taylor, on Money Maters Radio, broadcast out of WBNW in Boston. This is Part 4, the conclusion of an edited version of the radio interview.
STU: We continue with Dave Franzetta. It’s always a decision whether a business is valuable to continue or for whether, for whatever reasons, that only certain individuals are capable of running it. Or for personal or business reasons they don’t want the business to continue. Assuming there is a transition to a new, is there a formula as to whether the individual selling the business should stay on through the transition stage and remain in some capacity, in a position to make sure things are going well? Is there a formula for that?
DAVE: The only rule that would really apply in a situation like that is you’ve got to have strong leadership on the ground ready to take over whenever any kind of a change takes place. So if you’re a business owner and you have strong second tier leadership that you’ve developed over the years, you can sell your company and leave with confidence. And the buyer would also have confidence that management and leadership that stays behind will be successful. What happens all too often when someone builds a company and wants to sell it with confidence. But the buyer comes along and looks at the situation and says, whoa, I have to put strong management in place and they will require the owner to stay on for a period of time, either in a senior consulting role or management to keep things alive until new leadership can be in place.
STU: I really like what you did in the book, at the end of every chapter you’ve got questions that allow the reader to utilize introspection and help get a thought process going as to the content of each chapter. I think that is really important and thought it was worth mentioning.
DAVE: That’s interesting, Stu. That was the genesis of the book. We had prepared guides for our clients considering succession or exit planning and the guides were in the form of questions. Then we started to sort and categorize questions, and it became obvious to us that they were clustered around really important topics. So we tried to write our chapters with stories, little narratives from our practice that illustrate either particularly good or really bad cases of planning for succession. We set each chapter as if it was a small meditation on the subject. We really ask our readers to read a chapter and reflect on it. Questions we ask are not generic. They are for you specifically.
STU: Thank you, Dave Franzetta. It’s a really important book. Published by AuthorHouse in paperback. Thanks so much for joining us, David.
DAVE: It’s been a real pleasure, Stu. Thank you very much.
Check it out: “Changing Places: Making a Success of Succession Planning for Entrepreneurs and Family Business Owners”(published by AuthorHouse). Feedback please to: firstname.lastname@example.org
LAGUNA NIGUEL, CA – (DAVE FRANZETTA > 1030AM PDT, 112512)