Updated for 2011, this guide covers how to estimate, warranties and quantity discounts, an estimate form, design and engineering fees, service and installation hourly rates, a letter footage chart, and ...
Two stories outline some do's and dont's for succession plans.
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By Rock LaManna
Gary Nelson passionately loved his Midwestern-based, screenprinting business. Having built it from the ground up, Gary’s company had become well established over some 17 years, with many loyal employees and nearly $20 million in sales.
Gary always wanted it to remain a family-operated business. As he approached retirement, Gary began transferring most of the daily responsibilities to his son, Scott, a highly skilled screenprinter who had worked at the company for more than a decade. Gloria, Gary’s second wife, served as the company’s finance manager.
Business ran smoothly with Scott at the helm and Gary getting a taste of retirement. The company continued to profit and remained poised for further growth. The Nelsons then hired a professional succession strategist to help prepare them. Together, they developed a strategy that included organizing the company’s finances and beginning a search for another screenprinting business they could potentially acquire.
And then, tragedy.
Gary unexpectedly was diagnosed with the advanced stages of leukemia. Despite treatment, he passed away only six weeks later, never having been able to fully enjoy his retirement. The Nelsons were beyond devastation. Along with grieving the loss of their father and husband, they still had a business to run. But there was no estate plan, no will or a documented succession plan.
By law, Gloria inherited the company. Having full control, she sold the business two years later, without having discussed her plans with Scott, her stepson. Gary’s legacy was gone. Although Gary had promised Scott he would inherit the company, nothing in writing documented this. Scott subsequently left the company he’d been promised.
Selling a business requires a very strategic process, with care and consideration for all parties involved. Much of the Nelsons’ stress could have been avoided. Unfortunate turns of events can leave companies and families in dismal condition. Every company, large or small, should have an established succession plan. An estate plan (which includes a will) would have averted tension between Gloria and Scott, and Gary’s company would likely have carried on according to his wishes.
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