{"id":52247,"date":"2017-10-08t05:00:26","date_gmt":"2017-10-08t09:00:26","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=52247"},"modified":"2017-10-29t17:34:32","modified_gmt":"2017-10-29t21:34:32","slug":"3-ways-firms-scare-off-successors","status":"publish","type":"post","link":"\/\/www.g005e.com\/2017\/10\/08\/3-ways-firms-scare-off-successors\/","title":{"rendered":"3 ways firms scare off successors"},"content":{"rendered":"
<\/a>and 7 steps to making ownership attractive to new leaders. by terrence e. putney<\/em> buying into a firm as a new owner involves great opportunity, but also significant risk. it is reasonable for ownership candidates to evaluate the potential for professional and financial rewards before taking such a step.<\/p>\n more: <\/b>sponsorship: barrier to exit for diverse talent<\/a> | use collaboration technology to improve your firm<\/a> | 3 ways to keep your team members connected, engaged and energized<\/a> | growing, developing future leaders is a two-way street<\/a> | a winning culture is an intentional culture<\/a> therefore, firms must be willing to honestly assess the potential risks and benefits for candidates as they seek to attract new partner-owners who can contribute meaningfully to the firm\u2019s continued success. it is clear that in order to remain independent through the retirements of senior partners, a new generation of owners from your firm\u2019s emerging leaders has to be developed to carry on. what is their perspective on this challenge facing their firm?<\/p>\n we have found that the next generation is usually highly motivated to be the firm\u2019s succession bench. however, what surprises many senior partners is the next generation is often not willing to just assume whatever is proposed to them is acceptable without further evaluation.<\/p>\n senior partners sometimes fail to consider that with today\u2019s shortage of talent at a crisis level in some firms, emerging leaders have alternatives.<\/p><\/blockquote>\n it is important to make the shift in mindset from an employer\/employee relationship to a partner-to-partner relationship in order to make sure the opportunity the firm is proposing is compelling. senior partners sometimes perceive emerging leaders to be \u201clooking a gift horse in the mouth\u201d but in reality, emerging leaders\u2019 objectives for their investment in the firm are no different than any buyer\u2019s would be. the deal has to have upside almost from the outset. further, uncertainty and vagueness within the underlying business plan causes the opportunity to be less desirable. we are seeing an increase in emerging leaders negotiating for better terms for their admission and in worst-case scenarios rejecting the offer.<\/p>\n there are three things we often observe discouraging partner candidates from signing on as new owners:<\/p>\n what should you do to make sure your firm is ready to successfully pass the torch to the next generation of leaders?<\/p>\n discussion questions<\/strong><\/p>\n
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\nmost of the firms i work with on succession planning start off with a strong preference to remain independent. they want to avoid having to sell or merge in order to address the need to pay off and replace retiring owners. the common reasons cited are:<\/p>\n\n
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