We try to post three new blogs on our website each week. When we first started this process, my initial reaction was “How will I ever come up with another material to write that many blogs.” It reminded me of Larry David, the creative writer of the Seinfeld Show. Each time that Seinfeld was awarded more episodes, Larry David worried where the material would come from. The reality was that the ideas came from everyday life. Seinfeld became a show about nothing. Similar to Seinfeld, we don’t have a plan. The ideas present themselves everyday when dealing with clients, prospects, friends and families. 
Travel
I wish I was a more efficient traveler. I would like to spend more times reading my Kindle. Over the years, I have developed a skill of being able to fall asleep on command while flying. In spite of the discomforts of flying in coach, I can nap easily. Next to sleeping, computer games were my other way of passing time. It is a mindless activity that seems to go well with flying. I think I have discovered a new pastime, writing blogs on airplanes. I am flying more often these days and the material comes easily.
Friends on Airplanes
I am fortunate enough to reside in Florida and spend my winters in sunshine. I am on my way back from New York City and found myself on a plane with a golfing friend. My friend owns a business and is very successful. He is now 70 years old although he looks much younger and is in excellent health. There are no family members in the company. My friend knows that I help people sell their business and asked me if I could answer some questions.
The Concern
My friend is not in the insurance agency business. He owns a manufacturing company. He knows that he has a limited number of parties that could buy his business. He only has one competitor and they are located internationally. He has a limited number of clients and has several key employees. The biggest problem is that he has intellectual capital that would be lost if he was no longer with the business.
The Sale
We talked about his options. We could go to the competitor but his clients wouldn’t like the arrangement. His employees don’t have the skills or resources to buy the company. He doesn’t have any family members interested in the business. In spite of this situation, we still feel that there would be parties interested in his company.
The Dilemma
What happens if my friend has a serious illness or dies? The value of the business goes from substantial to next to nothing. Who cares? He has died. The reality is that his family cares a lot. His wife needs the income or assets to maintain a lifestyle. His employees and customers care. We have seen situations where an owner dies and the value of the insurance agency becomes a fraction of its former value. We are very surprised that it doesn’t happen more often. We believe that this situation will become more prevalent. Please ask yourself, are you one of these owners? We know several and wish we could help them. If you are in this situation, please start to plan your eventual retirement. It’s your best life insurance policy.
Typically organizations wait until it’s time to sell (or so they think) before ever addressing succession planning. Sukay & Associates developed a list of “The 10 Worst Reasons to Sell Your Company” based on their experiences with potential clients. Click here to download.
