I am a big golf fan. Although I enjoy many outdoor activities, my primary passion is golf. I try to play when time permits. As my schedule tightens, I tend to watch very few sporting events. However, I do enjoy following the big golf tournaments. John Biasiello is a casual golfer but he allows me to rehash the weekend results. Our discussion last Monday was on the impressive performance of Rory McIlroy at the British Open. In addition to his very professional striking of the golf ball, we discussed that Rory’s father, Gerry McIlroy, who had put a bet down 10 years ago believing that his son would win the British Open over the next decade. This wager was not placed when Rory was an established golfer. The wager was placed when Rory was a 15 year old amateur.
This demonstrated a massive belief in his son’s abilities. It was rumored that McIlroy senior had won a quarter of a million Great British Pounds. Wouldn’t it be wonderful if our lives were like Rory and Gerry McIlroy; both men were golfers, the son out did the father’s success to become a professional. Ultimately Rory won for himself and his father. Unfortunately or not (depending on how you see it) this situation is very rare.
Most children nowadays like to make their own way in the world. They often choose a different path from their parents. My father, like many in the post war generation, worked in a manufacturing plant. He told everyone that he was an engineer, but was probably closer to the foreman. His father was a miner and a blacksmith. My father gave me very little direction towards a career other than “you aren’t going to do what I do.” This is something that needs to be thought about when planning an internal perpetuation of your agency.
We would all love the fairytale story of our children taking over the business and bettering our own successes. Every generation always wants things to be better for their children, though some don’t realize what this “better” might be. The stakes of Gerry McIlroy’s bet were 250/1. Gerry was convinced of Rory’s path to golf stardom. During our internal perpetuation projects, we always ask the owner a simple question. Does your son or daughter see their future the same way you do? Do they really want to own the agency? The answer is usually “Why wouldn’t they?”
The fact is that not everyone is meant to be a business owner. Not everyone wants to own their own business. We thought we would write this blog and get in a golf and turkey reference in the same blog. Here we go: Assume that your son or daughter buys your business. You need the money for your retirement. The market softens; they lose some major accounts or just don’t share your passion or leadership. They can no longer repay the note. How would everyone enjoy Thanksgiving dinner? We have encountered many legacies that just don’t want this type of pressure and responsibility.
Internal Perpetuations are wonderful if all parties are aware of the risks. However, not everyone has the same clarity of their future as Rory and Gerry McIlroy. Make a bet in which everyone wins.
