The Succession Solution Brochure - Houston Harbaugh Attorneys at

The Succession Solution
SM
A Process for Business Transition
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Even though 80% of
business owners intend to
transfer their business to the
next generation, only 30%
accomplish their objective.
More than 50% of family
members have little or
no idea of the founder’s
intentions regarding
succession.
Less than one-third of
family businesses survive
to the second generation,
10% to the third, and only
3% make it to the fourth
generation and beyond.
Will your business survive the
next generation?
Critical to the future success of almost any business is planning for its succession.
Without it, business can face the loss of clients, key personnel, or encounter family
disputes. This can ultimately lead to the loss of shareholder value, family relationships,
not to mention the destruction of the founder’s legacy.
An examination of successful multi-generational family businesses shows the use
and recognition of two fundamental strategies:
1. Plan for Succession
Successful family businesses adopt some form of a succession process. It’s important
to note that there is no one particular “best process” to follow. Rather, it is the mere
fact that some type of procedure is adopted and followed.
2. Respect for the Family Dynamics
There is a large body of evidence to show that the most failures in the transfer of a
business to the next generation are the result of the failure to recognize and value the
concerns of all affected family members. Focusing on the family as well as on the
business can enrich both.
To help family businesses continue to the next generation, we have combined
these two strategies into The Succession Solution.
Introducing The Succession Solution
The Succession Solution is our unique process that lays a realistic and practical
framework for the transfer of a business in a thoughtful, efficient and objective manner.
It walks the closely-held business owners through a step-by-step approach for the
transition between generations of business owners and managers.
The Succession Solution uses a 5-step approach to review, prepare and execute on a
customized succession plan for your business.
1
2
3
4
5
STEP 1 Why do I want this?
Here we’ll review your priorities and ask questions like: Why do you want
to transition your business? What do you have in place now to successfully
transition your business? Who should take over your business?
STEP 2 What’s in my way?
In this phase, we’ll look at the risks and obstacles that may hold you back
from meeting your goals, as well as explore opportunities you can use to
successfuly tranfer your business.
STEP 3 How do I make it happen?
After evaluating where you are and where you want to be, we’ll look at the
actions you can take to achieve your goals. We’ll create a plan that will outline
and clearly define those actions and who will be responsible for them.
You have three
succession choices:
1. Transfer the business
to next generation
2. S ell the business to
a third party
3. Close the business
What is your choice?
STEP 4 When do I begin?
After the plan is agreed upon, it’s time to put the plan into action. We’ll
help you define milestones for each action and make sure your plan is
kept on track.
STEP 5 How did I do?
Our services don’t end after the plan has been launched. We’ll continue
to work with you to evaluate if the plan is working as intended and help
make any necessary adjustments.
84% of family businesses achieve a successful succession
when an orderly transition plan is put in place.
Call me today to take
the first step toward your
succession plan.
Bradley J. Franc
412.288.2218
francb@hh-law.com
Brad Franc, Author, The Succession Solution
As an attorney, experienced entrepreneur and former certified public accountant,
Brad Franc has a broad knowledge of what it takes to start, manage and transition
a business. He leverages this unique perspective in his role as advisor and
counselor to clients of all sizes from all sectors involved in the succession process.
Having worked with more than 200 family business owners, Brad is distinctly
effective in helping business owners prepare an organized and structured
succession plan. Brad’s focused, process- and detail-oriented approach keeps
planning on track until conclusion.
Brad has practiced business and estates and trust law at Houston Harbaugh for
more than 25 years. During that time, he also founded three successful businesses.
With two businesses listed on Inc. Magazine’s list of fastest-growing businesses
eight separate times, Brad has personally experienced every phase of a business’
life cycle—from start up through transition.
What Clients Are Saying About The Succession Solution
“During our first meeting with Brad, we were impressed by his direct approach and ability to ask the “tough
questions”—questions that needed answers in order to advance the succession planning process—but in a manner
that did not alienate any of the stakeholders. At times it would have been easier to focus on the present state of
the business and not think about the future, but Brad’s professional demeanor combined with his sensitivities to
family dynamics helped to take the sting out of some difficult conversations our family members had to have.”
Bruce Edwards
For more information,
contact:
Bradley J. Franc
412.288.2218
francb@hh-law.com
Brookside Lumber Company
“My family retained Brad Franc for both Corporate Succession Planning and personal estate planning. Expertise
and knowledge was clearly our goal in seeking out a firm. However, I believe the strength of an estate planning
attorney is also defined by the ability to keep the process moving forward to completion. This skill mixed with
expertise was the ingredient that pleased us most.”
Michael Kranich, Jr.
President, Kranich’s Jewelers
“Business is always full of uncertainty. One of the biggest is how to transition a family business into the next
generation. With Brad’s help, my business is already well into Act II. While my children are managing the
business today, it won’t be long before Brad will be helping them prepare to the third generation.”
Michael Baker
Baker Gas
“I have been working with Houston Harbaugh since 2004 when a member of our family passed away, leaving
us with many unanswered questions as to how to proceed in the family business while protecting us and future
generations. When we were introduced to Brad Franc, we had no idea where to start planning for our succession
needs. Brad was wonderful in taking the time to explain the options and benefits of different ideas we each had.
We continue to work with Brad in making sure our succession planning is current as well as other business
related issues that arise. I have found any member of the office efficient and knowledgeable.”
Lisa Skander
Skander Tire Service Inc.
“My business is celebrating 50 years in operation, and we have been engaged with Brad Franc for almost half
of that time span. Initially, we worked with Brad on corporate organization and planning, then embarked on
business succession planning as the next natural step. Granted, succession planning doesn’t need to take the
20 years we have dedicated to it, but, with Brad’s help, we have made a number of significant decisions—and
implemented resulting actions—in that time to smoothly transition our business from first to second generation.
We’re focused now on second to third generation transition and, again thanks to Brad, we’re confident we will
be one of the few businesses nationally that successfully carry a family business to the third generation.”
Glenn Kress
Kress Brothers Builders, Inc.
Three Gateway Center
401 Liberty Ave
22nd floor
Pittsburgh, PA 15222
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