How far along are you in planning for succession in your company? David Berdon & Co., a New York accounting firm, has compiled an inventory for family owned real estate firms that is designed to uncover points that, if overlooked, might jeopardize a smooth transition. The checklist will also be useful to other types of family firms wishing to devise an inventory applicable to their industry and top management functions. David Berdon has been providing accounting and management advisory services to real estate families for over eight decades.
To use this checklist, mark “Yes” or “No” after each question. Then tally your responses to see how you stack up.
Yes No
It’s time to calculate your score and see if your family business will survive and flourish into the next generation. Each “yes” is worth one point. How did you measure up?
25-29 Congratulations! You have helped to ensure the continuity of your business. Be careful—some key areas may still need to be addressed.
18-24 You’ve taken some important steps toward planning. However, significant areas require scrutiny to ensure the continuity of your business.
10-17 Dangerous gaps exist in your planning. Urgent attention should be given to the issues isolated by the checklist.
Less than 10 Your business is at risk. Take immediate steps to meet with your professional advisers to either draw up a succession plan or lay the groundwork for cashing out.
© 1998 David Berdon & Co. LLP. All rights reserved.